US Removes Syria From Terrorism Sponsor List

The United States has removed Syria from its list of state sponsors of terrorism, ending a designation in place for nearly 47 years and removing a significant barrier to investment and international banking.

The decision took effect on Monday after the expiry of a 45-day congressional review period triggered by President Donald Trump’s notification to Congress on July 8.

Secretary of State Marco Rubio said the move recognised steps taken by President Ahmed al-Sharaa’s government to distance Syria from international terrorism and commitments to continue doing so.

Syria had been on the list since December 1979, when Washington accused the government of Hafez al-Assad of supporting international terrorism. The designation remained throughout the rule of his son Bashar al-Assad and nearly 14 years of conflict.

Its removal follows Assad’s fall in December 2024 and a broader shift in US policy towards engagement with the new authorities in Damascus.

Washington ended its comprehensive sanctions programme on Syria in July 2025, while retaining targeted measures against Assad and his associates, human rights abusers, drug traffickers and other designated actors. The Caesar Act was subsequently repealed in December, removing another major layer of sanctions risk.

The terrorism designation nevertheless remained a significant deterrent for banks and investors. It carried restrictions affecting US foreign assistance, defence exports, certain dual-use goods and financial transactions, while adding legal and compliance risks for companies considering business in Syria.

Foreign Minister Asaad al-Shaibani described the designation as the “last obstacle” to reconnecting Syria with the global financial and economic system.

“There is no longer any obstacle to investment, doing business and rebuilding economic life in Syria,” he told Reuters ahead of the announcement.

Syria is seeking substantial foreign investment to rebuild infrastructure and an economy damaged by the conflict. International banks and companies have begun exploring opportunities as restrictions have eased.

Finance Minister Mohammad Yisr Barnieh held talks this month with Bank of America executives over potential co-operation and Syria’s reintegration into the international financial system, according to the finance ministry. Mastercard has also been working with QNB Group and the Central Bank of Syria on infrastructure intended to restore international card payments.

The removal does not mean that all transactions involving Syria are now unrestricted. Targeted sanctions remain against designated individuals and organisations, requiring banks and companies to continue screening counterparties and ownership structures. US financial institutions can provide services to Syrian banks and establish correspondent banking relationships, provided sanctioned parties are not involved.

Nor will the change necessarily produce an immediate return of international finance. Banks, insurers and multinational companies make their own assessments of legal, compliance and commercial risk, and years of sanctions can continue to shape those decisions after the underlying restrictions are removed.

The decision also marks another step in Washington’s rapprochement with al-Sharaa’s government. The US has praised Damascus’s co-operation against Islamic State and said the easing of restrictions is intended to support Syria’s stabilisation and reconstruction.

Monday’s announcement also removed the Nusrah Front from the US list of Specially Designated Global Terrorists. Al-Sharaa formerly led the group before breaking ties with al-Qaeda in 2016. Iran, North Korea and Cuba remain on the State Sponsors of Terrorism list.

After years in which sanctions and terrorism-related restrictions largely excluded Syria from international finance, the question is now how quickly the easing of those restrictions translates into greater access to banking, foreign capital and investment.