Country Reports on Terrorism 2015 - State Sponsors of Terrorism: Syria

Designated in 1979 as a State Sponsor of Terrorism, the Asad regime continued its political support to a variety of terrorist groups affecting the stability of the region, even amid significant internal unrest. The regime continued to provide political and weapons support to Hizballah and continued to allow Iran to rearm the terrorist organization. The Asad regime's relationship with Hizballah and Iran grew stronger in 2015 as the conflict in Syria continued. President Bashar al-Asad remained a staunch defender of Iran's policies, while Iran has exhibited equally energetic support for Syrian regime efforts to defeat the Syrian opposition. Statements supporting terrorist groups, particularly Hizballah, were often in Syrian government speeches and press statements.

Over the past decade, the Syrian government has played an important role in the growth of terrorist networks in Syria through the Asad regime's permissive attitude towards al-Qa'ida and other terrorist groups' foreign fighter facilitation efforts during the Iraq conflict. Syria has served for years as a hub for foreign terrorist fighters; the Syrian government's awareness and encouragement for many years of violent extremists' transit through Syria to enter Iraq, for the purpose of fighting Coalition troops, is well documented. Those very networks were among the violent extremist elements, including ISIL, which terrorized the Syrian and Iraqi population in 2015 and – in addition to other terrorist organizations within Syria – continued to attract thousands of foreign terrorist fighters to Syria in 2015. This environment has also allowed ISIL to plot or encourage external attacks in Libya, France, Lebanon, Yemen, Saudi Arabia, Egypt, and the United States.

As part of a broader strategy during the year, the regime portrayed Syria itself as a victim of terrorism, characterizing all of the internal armed opponents as "terrorists."

The Asad regime's policies generate concern regarding terrorism financing. Industry experts reported that 60 percent of all business transactions are conducted in cash and that nearly 80 percent of all Syrians do not use formal banking services. Despite Syrian legislation that required money changers to be licensed by the end of 2007, many continued to operate illegally in Syria's vast black market, estimated to be as large as Syria's formal economy. Regional hawala networks (an informal value transfer system among money brokers operating outside traditional financial systems) remained intertwined with smuggling and trade-based money laundering, and were facilitated by notoriously corrupt customs and immigration officials. This raised concerns that some members of the Syrian government and the business elite were complicit in terrorist finance schemes conducted through these institutions.

The United States cannot certify that Syria is in compliance with its obligations under the Chemical Weapons Convention (CWC). The United States assesses that Syria has used chemical weapons systematically and repeatedly against the Syrian people every year since acceding the Convention, and is therefore in violation of its obligations under Article I of the CWC. In addition, the United States assesses that Syria did not declare all the elements of its chemical weapons program, required by Article III of the CWC and that Syria may retain chemical weapons as defined by the CWC. The process of verifying the accuracy and completeness of the Syrian declaration and the resolution of these matters is ongoing.