June 30, 2005
JS-2617

Treasury Designation Targets Individuals
Leading Syria’s Military Presence in Lebanon

The U.S. Department of the Treasury today named Ghazi Kanaan and Rustum Ghazali Specially Designated Nationals (SDNs) of Syria pursuant to Executive Order 13338, which is aimed at financially isolating individuals and entities contributing to the Government of Syria's problematic behavior. 

"Actions like today's are intended to financially isolate bad actors supporting Syria's efforts to destabilize its neighbors," said Treasury Secretary John W. Snow.

"We are seeing democracy take hold in Lebanon and other places in the Middle East, yet Syria continues to support violent groups and political strife. Syria needs to join its neighbors in embracing the progress towards liberty," Snow continued.

Information available to the U.S. Government indicates that Kanaan and Ghazali have directed the Syrian Arab Republic Government's (SARG) military and security presence in Lebanon and/or contributed to the SARG's support for terrorism. Both Ghazali and Kanaan allegedly engaged in a variety of corrupt activities and were reportedly the beneficiaries of corrupt business deals during their respective tenures in Lebanon.

Today's designation freezes any assets the designees may have located in the United States, and prohibits U.S. persons from engaging in transactions with these individuals.

Identifying Information

Ghazi Kanaan
DOB: circa 1943
POB: Near Qerdaha, Syria
Nationality: Syria
Address: Damascus, Syria
Position: Minister of Interior

According to information available to the U.S. Government, prior to his brief appointment as Chief of the Syrian Political Security Directorate and his current position as SARG Interior Minister, Ghazi Kanaan served as Syrian Military Intelligence (SMI) Chief for Lebanon for approximately 20 years.  He was replaced by Ghazali in late 2002.  During his command of SMI in Lebanon, Kanaan ensured that Syrian military intelligence officers remained deeply involved in Lebanese political and economic affairs.

Information available to the U.S. Government indicates that as an SMI commander in Lebanon, Kanaan contributed to the SARG's provision of support to Specially Designated Global Terrorist groups (SDGT), such as Hizballah.  In 2002, three rockets in a convoy allegedly escorted by Kanaan were personally delivered across the Syrian-Lebanese border to Hizballah in Lebanon.  In May 2001, in a meeting between Kanaan and Hizballah security leaders, Hizballah agreed to Syria's request that Hizballah refrain from executing any military operations without first notifying Syria, according to information available to the U.S. Government.  However, in the same meeting, Hizballah also agreed to continue its casing and reconnaissance operations.

Information available to the U.S. Government indicates that Kanaan also enjoyed extensive influence over Lebanon's military and security services.  In late December 2001, a Lebanese Armed Forces (LAF) commander reportedly declared that effective January 2002, weapons permits and security passes issued by Syrian institutions would no longer be valid except for those passes and permits issued by Kanaan.  Only those passes and permits issued by Kanaan would continue to allow the holder to carry weapons and to pass through LAF and Syrian military checkpoints in Lebanon without being questioned or searched.

Allegedly, in August 2001, the SARG believed that the Lebanese prime minister, the speaker of the Lebanese parliament, and a sectarian leader had created a new alliance that was, in Syria's assessment, a violation of Syria's long-standing policy to prevent any one political party or bloc from dominating Lebanese politics.  Furthermore, Syria believed that the new alliance could weaken Lebanese political parties' dependence on Damascus and diminish SARG influence within Lebanese politics.  In response to this alliance, Kanaan met with the speaker of parliament to remind him that his best interests lay with the Syrians and that he should impress that fact upon others within parliament with whom the speaker had influence.

Additionally, press accounts observed that during the 2000 Lebanese parliamentary elections, Kanaan appeared to oversee the entire electoral process.

Rustum Ghazali
DOB: circa 1949
Nationality: Syria
Address: Syria
Position: Chief of Syrian Military Intelligence for Lebanon

Ghazali assumed command of Syrian Military Intelligence in Lebanon after replacing Ghazi Kanaan, his mentor, in late 2002.  U.S. Government information reports that Ghazali was the implementing agent of Syrian policies in Lebanon until Syria's withdrawal from Lebanon in April 2005.  During his command, Ghazali directed and significantly contributed to the SARG's military and security presence in Lebanon.  Information available to the U.S. Government indicates that Ghazali, in his responsibilities for Lebanese affairs, reported directly to President Asad and then-SMI Director Hasan Khalil.  

Information available to the U.S. Government indicates that Ghazali manipulated Lebanese politics to ensure that Lebanese officials and public policy remained committed to the SARG's goals and interests. In late 2004, Ghazali reportedly warned that Syria was determined to physically harm anyone who interfered with Lebanon's economic situation and caused a crisis of confidence. Also, as of late 2004, Lebanese President Lahoud allegedly consulted with Ghazali before selecting positions within his cabinet.

Reportedly, Ghazali could influence a number of the Lebanese members of parliament, and did so notably on the renewal of Lebanese President Lahoud's term in office. After the Lebanese constitution was amended to allow President Lahoud to renew his term, some commentators noted that this appeared to be the second time that Damascus had imposed a president on Beirut. Press reports indicate that in 1995, the presidential term of Elias Hrawi was also extended for three years at the urging of Syria. 

Information available to the U.S. Government indicates that Ghazali also has exerted considerable control over the Lebanese military.  As of mid-2003, SMI did not need to maintain as large a presence among the mid-levels of each of the Lebanese security services, because Ghazali allegedly required the heads of the LAF Directorate of Intelligence, the Internal Security Forces and the Directorate of General Security to report to him on a daily, and at times hourly, basis.  In a further indication of his influence over security and political issues in Lebanon, as of late 2003, Ghazali had significant input into all internal matters in the LAF, including promotions and assignments to key positions.

Allegedly, in November 2003, senior LAF Intelligence Directorate officers continued to stress to their subordinates the importance of strengthening ties between LAF and SMI.  Furthermore, they encouraged subordinates to coordinate even more closely than previously with SMI on all issues.

President George W. Bush signed E.O. 13338 on May 11, 2004 in response to the Syrian government's continued support of international terrorism, sustained occupation of Lebanon, pursuit of weapons of mass destruction and missile programs and undermining of U.S. and international efforts in Iraq. Syria's acts threaten the national security, foreign policy and economy of the United States.

The Order declared a national emergency with respect to Syria, and authorized the Secretary of the Treasury to block the property of certain persons and directing other U.S. Government agencies to impose a ban on exports to Syria.

The Treasury may designate individuals and entities found to be or to have been:

• Directing or otherwise significantly contributing to the Government of Syria's provision of safe haven to or other support for any person whose property or interests in property are blocked under United States law for terrorism-related reasons, including, but not limited to, Hamas, Hizballah, Palestinian Islamic Jihad, the Popular Front for the Liberation of Palestine, the Popular Front for the Liberation of Palestine-General Command, and any persons designated pursuant to Executive Order 13224 of September 23, 2001;
• Directing or otherwise significantly contributing to the Government of Syria's military or security presence in Lebanon;
• Directing or otherwise significantly contributing to the Government of Syria's pursuit of the development and production of chemical, biological, or nuclear weapons and medium- and long-range surface-to-surface missiles;
• Directing or otherwise significantly contributing to any steps taken by the Government of Syria to undermine United States and international efforts with respect to the stabilization and reconstruction of Iraq; or
• Owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, any person whose property or interests in property are blocked pursuant to this order.

Click the following link for the full text of E.O. 13338: http://www.whitehouse.gov/news/releases/2004/05/20040511-6.html