- 'It is also critical to recognize that any recovered funds must be used for the benefit of the Syrian people under a legitimate and internationally recognized government,' Overton tells Anadolu
- 'The UK will work closely with civil society and the international community to ensure that those responsible for war crimes and other atrocities (in Syria) are held to account,' Foreign Office spokesman says on Assad-linked assets
LONDON
Since the former leader of Syria's Baathist regime was ousted last month, reports have surfaced in the UK about £55 million (nearly $68.3 million) of Bashar al-Assad's personal funds being locked in a London bank.
While frozen, these assets represent only a fraction of the £163 million linked to Assad’s inner circle. Their presence has reignited concerns over financial oversight in the UK and the enforcement of sanctions imposed on the regime throughout Syria’s near-14-year civil war.
Human rights groups and political analysts are calling for urgent action to seize these assets and ensure they are returned to Syria under a legitimate, internationally recognized government.
The issue takes on added significance amid the ongoing conflict in Ukraine, as Western nations move to seize and redirect Russian assets to help rebuild the war-torn country.
Frozen funds and legal hurdles
Britain retains sweeping sanctions against 310 individuals and 74 entities over their links to the regime, including Assad himself, over "the atrocities committed in Syria," a spokesperson for the Foreign, Commonwealth and Development Office (FCDO) confirmed to Anadolu.
"The UK will work closely with civil society and the international community to ensure that those responsible for war crimes and other atrocities are held to account," added the official.
However, while the UK’s Sanctions and Anti-Money Laundering Act 2018 (SAMLA) allows for the freezing of assets, confiscation without a criminal conviction remains a legal grey area.
Experts warn that this gap allows sanctioned individuals to retain wealth within UK financial institutions, even as their assets remain technically inaccessible.
“The presence of these funds in the UK raises serious concerns about the effectiveness of current financial oversight and regulation,” said Iain Overton, executive director of Action on Armed Violence.
“This issue points to a broader systemic problem where the UK, despite its stated commitment to human rights and international law, risks serving as a safe haven for illicit assets connected to regimes implicated in severe abuses. Such cases demand urgent attention to ensure that financial systems do not enable or perpetuate harm,” said Overton.
According to him, the UK’s independent sanctions regime, introduced post-Brexit, was intended to strengthen Britain’s ability to impose financial restrictions on authoritarian regimes. However, enforcement has been inconsistent.
"The Foreign, Commonwealth and Development Office (FCDO) expanding its sanctions team by over 300%. Despite this, enforcement has been patchy at best," he said.
"For instance, hundreds of reported sanctions breaches have not resulted in adequate action or deterrent penalties. This lack of consistent enforcement undermines the credibility of the UK’s sanctions system," he added.
'Clear legal frameworks needed to reallocate Assad’s frozen funds'
Overton criticized the UK government to establish clear legal mechanisms to ensure that any recovered funds support Syria’s reconstruction under a legitimate and internationally recognized government.
“It is also critical to recognize that any recovered funds must be used for the benefit of the Syrian people under a legitimate and internationally recognized government. This would require close collaboration with global organizations to ensure transparency and accountability in the use of these funds,” said the head of the London-based non-governmental organization.
He pointed to the UK’s approach to Russian sanctions in response to the war in Ukraine as a potential model.
"While the UK has introduced one of the most severe sanctions regimes on paper, its impact has been undermined by enforcement gaps and loopholes that have allowed sanctioned individuals and entities to bypass restrictions," he added.
According to Overton, the UK needs to develop more robust methods for tracking assets, enhance transparency on ownership, and provide sufficient resources to enforcement agencies to effectively address these weaknesses surrounding Assad-linked funds.
However, this effort may not be straightforward, as some of the finances once associated with the regime may need recategorizing as state funds of the country's new administration.
"With Assad’s fall, there is a good case to regard these funds as Syrian state assets that should be at least taken out of Assad’s hands," says senior foreign affairs consultant Ceren Kenar.
How Russian assets are being used to support Ukraine?
The issue concerning Assad-linked assets comes in the wake of Western nations, especially in the EU and G7 groups, using frozen Russian funds to support Ukraine.
The UK has been one of the countries to utilize profits from frozen Russian assets to do so.
In October 2024, Britain announced a £2.26 billion loan to Ukraine, funded by the interest generated from sanctioned Russian sovereign assets.
This initiative is part of the G7's $50 billion loan package aimed at bolstering Ukraine's military capabilities and supporting its reconstruction efforts.
The EU holds approximately €210 billion (over $220 billion) in Russian Central Bank assets, primarily frozen in Belgium. The interest generated from these assets is estimated to be around €3 billion annually.
The bloc has proposed transferring 90% of this interest to a fund dedicated to financing arms for Ukraine, with the remaining 10% allocated to budgetary aid for Kyiv.
It has also approved a €35 billion loan to Ukraine, financed through interest generated by frozen Russian assets.
Overton's final assessment encapsulates the core challenge: "Ultimately, the UK's ability to effectively freeze or seize such assets and ensure their ethical redistribution relies on political will, the allocation of resources, and a commitment to addressing systemic flaws in the sanctions framework."
