US Removes Syria From State Sponsors of Terrorism List, Easing a Key Barrier to Banking and Investment

The US State Department removed Syria from its list of State Sponsors of Terrorism on 24 August 2026, according to reports by Al Jazeera, NBC News and U.S. News. The removal took effect after a 45-day congressional review period that began when President Donald Trump formally notified Congress on 8 July 2026 of his intention to rescind the designation. Syria had carried the designation since 1979. Secretary of State Marco Rubio said the action recognised positive steps taken, and further commitments made, by the Syrian government under President Ahmed al-Sharaa to distance Syria fully from acts of international terrorism. The designation carried restrictions on US foreign assistance, defence exports and certain financial transactions. Its removal is expected to reduce legal risk for international banks working on Syria-related financing and transactions, and to lift restrictions on US foreign assistance to the country. Analysts cited in coverage describe the change as removing a major obstacle to banks reconnecting with the global financial system and to investment flows, while noting that the effects are likely to be gradual and will depend on governance and anti-corruption measures. For companies considering trade, banking or investment links with Syria, the change is relevant to compliance and financing assessments. Businesses should continue to verify the sanctions and licensing position applicable to their specific activities and counterparties.