The United States has imposed sanctions on 11 individuals and entities for their involvement in aiding financial crimes, drug trafficking, and the exploitation of Syrian resources by President Bashar Al-Assad’s regime.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) highlighted Syria’s role as the leading producer and exporter of Captagon, a powerful stimulant popular in the Middle East and Europe.
The Captagon Trade
Captagon is a synthetic drug that is chemically similar to amphetamine and is classified as a stimulant. It is typically used to increase alertness, concentration, and physical performance, and it can also induce a sense of euphoria. Captagon has been linked to increased energy levels and a decrease in the need for sleep, making it popular among individuals seeking to stay awake for extended periods, such as truck drivers or soldiers.
The illicit Captagon trade refers to the illegal production, distribution, and use of Captagon. This trade often involves clandestine laboratories producing the drug in countries where regulations are lax or enforcement is weak. The illicit Captagon trade is a global issue, with the drug being trafficked to various regions, including the Middle East, Europe, and Asia.
The illicit Captagon trade poses several risks, including health risks associated with the use of the drug, as well as the involvement of organized crime networks in its production and distribution.
The illicit Captagon trade became the major revenue source for the Assad regime, Syrian armed forces, and paramilitary groups. The exploitation of extractive industries with foreign assistance has bolstered regime profits, and Syrian money service businesses played a key role in evading sanctions and facilitating financial transactions on behalf of the regime, according to OFAC.
OFAC Executive Order
The Assad regime continues to employ a variety of schemes to evade sanctions and sustain its longstanding campaign of repression against its citizens, including trafficking in illegal drugs, exploiting currency exchanges, and leveraging seemingly legitimate businesses.
The sanctions were imposed under Executive Order 13582 from August 2011, which aims to block the property of the Syrian government and prohibit certain actions concerning Syria.
Additionally, the targeted individuals have been designated under the Caesar Syria Civilian Protection Act of 2019, known as the Caesar Act, invoking secondary sanctions against those providing substantial support to the Syrian government.
Who was sanctioned?
Syrian national Taher al-Kayali, the owner and operator of Neptunus LLC, has been involved in smuggling Captagon and hashish, which are known funding sources for the Assad regime. Using Neptunus, al-Kayali purchased the cargo ship Noka, intercepted by Greek authorities in 2018 while carrying over $100 million worth of Captagon and hashish from Lattakia to eastern Libya. Al-Kayali has also aided Captagon traffickers in distributing drugs to Europe through Greece and Italy.
OFAC has sanctioned Al-Kayali as he provided support to the government of Syria. Neptunus has been sanctioned because it acted for or on behalf of al-Kayali.
Mahmoud Abulilah Al-Dj led operations behind multiple Captagon shipments, including the Noka shipment seized by Greek authorities and three others in Libya. He is also the exclusive agent for Syrian airline Cham Wings in Libya.
Al-Dj used Al-Ta’ir Company to receive cargo tied to Captagon shipments and established a smuggling route from Lattakia to Benghazi, resulting in huge profits for traffickers. After facing charges in Libya, he established FreeBird Travel and Tourism.
Exchanges Supporting the Operations
Syria-based Maya Exchange Company (Maya), together with previously sanctioned Syrian exchanges Al-Fadel Exchange and Al-Adham Exchange, played a key role in facilitating illicit transactions, foreign currency transfers, and sanctions evasion schemes benefiting the Syrian government.
In mid-2023, Maya collaborated with Aleksey Makarov, Vice President of the sanctioned Russian Financial Corporation Bank (RFC Bank), and Muhammad ‘Ali Al-Minala (Al-Minala) of the Central Bank of Syria (CBoS) to process payments to a Jordanian beneficiary, aiming to obscure Russian involvement in these transactions.
Al-Minala, heading the Foreign Operations and Communications Department within the Banking Operations Directorate at CBoS, has worked with Makarov on various occasions, coordinating foreign currency transfers and sanctions evasion schemes ultimately benefiting CBoS.
In response to these actions, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Maya and Makarov.
