Treasury seeks to up pressure by sanctioning Syrian bank

The Treasury Department announced Wednesday that it would sanction a key Syrian bank, casting that action as the latest step in a broad international effort to isolate Bashar Assad’s regime.

Treasury says that the Syria International Islamic Bank has been acting as a front for the Commercial Bank of Syria, the country’s largest bank, as it tries to skirt sanctions from the United States, the European Union and the Arab League.

David Cohen, Treasury’s under secretary for terrorism and financial intelligence, told reporters on a Wednesday conference call that SIIB had covertly helped the Commercial Bank with $150 million in transactions.

The newest U.S. sanctions come just days after scores of Syrian civilians were killed in Houla, an incident that led the Obama administration and other governments around the world to expel diplomats from Damascus.

“We were reminded again this weekend just how critically important these efforts are, and of the need to do more to end Assad’s grip on power in Syria,” Cohen said.

In addition to imposing sanctions on Syria, the Obama administration has also said that Assad has lost the support of his people and should step aside.

“We will make clear to the Assad regime and its supporters that the only future for Syria is one without Bashar al-Assad,” Cohen said Wednesday.

But top Republicans like Mitt Romney, the party’s presumptive presidential nominee, and Sen. John McCain (Ariz.) have criticized President Obama for not being tough enough on Syria, where hundreds of people have died during the 15-month uprising.

Cohen said Wednesday that the sanctions were taking a toll on Syria that was mounting by the day. Under the sanctions announced Wednesday, Americans and U.S. companies are barred from doing business with SIIB, and the bank’s assets in the United States will be frozen.

Treasury also noted Wednesday that Qatar is ordering its banks to stop working with SIIB, and that it will host a meeting in Washington next week with Qatar and Turkey that will examine ways to further bulk up sanctions on Damascus.

But Cohen also noted there were challenges in working with other countries on the Syrian issue.

Russia and China, for instance, have impeded efforts at the United Nations to further sanction Syria. Cohen said that Syria would be one of the issues on the itinerary in an upcoming visit to Russia.

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