Syrian president issues law on founding private, joint share-holding, banking secrecy
Syria, Economics, 4/17/2001

Syrian President Bashar al-Assad has issued Law no, 28 for the year 2001 lately approved by the People's Assembly ( PA) in its session held on March 29.

The Law provides for licensing the foundation of banks by private share-holding companies or joint ones with the contribution of the country's banking sector, the Syrian Insurance Establishment and other saving establishments at a rate of 25 percent from their own capital by virtue of a resolution to be made by the cabinet ministry.

According to provisions of the law, activities of the proposed banks will be supervised by the Central Bank of Syria and controlled by the valid hard currencies regulations in line with the basic monetary rule no. 87 of 1953 and its amendments. Among provisions of Law No 28 are: The banking companies' shares should be nominal except those of the public sector.

Shares must be owned by Syrian citizens whether legal or ordinary persons. By virtue of a cabinet resolution and according to rules of the law, legal or ordinary Arab and foreign peoples have the right to participate in the foundation of banks and to purchase shares provided that their holds in the capital of the bank should not exceed the percentage stipulated in article No 9 of this law and that their contributions must be in hard currency according to the validated stock exchange in the markets.

The capital of any bank must not be less than 1.5 billion Syrian pound.

The value of each share should not be less than 500 Syrian pounds.

The allocation of founders must not be less than 25 percent of the bank's capital.

President Bashar al-Assad also issued Law no. 29 which was approved by the Peoples's Assembly in the same session.

The Law provides for governing all the country's working banks with the rules of banking secrecy and for allowing the banks to have the right to open deposit accounts for dealers whose names and values of their accounts and other assets will be anonymous unless dealers have written approval or irrevocable court verdicts are issues.

Law No 29 also provides for the un-acceptability of carrying out any seizure on money and assets deposited at banks unless owners make written approval for the confiscation or legal sentences are issued by courts.

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