On January 23, 2017, efforts were being mobilized during the Astana
negotiations to reach a settlement among the parties to the Syrian
conflict. At the same time, the official in charge of reporting on
money laundering activities at the Alemán, Cordero, Galindo & Lee
law firm was in the process of submitting a report written earlier
on January 11 to the British Virgin Islands Financial Investigation
Agency: The subject was a suspicious financial activity regarding
three companies registered in BVI.
The three companies included in the report are Libra Investments
Trading, Samya Investment Limited and Sunset Real Estate Properties
Limited. They are owned by Syrian businessman Samir Hassan whose
name has been on the European sanctions list since 2011 for funding
the Assad regime.
This investigation is based on leaked documents obtained by the
International Consortium of investigative Journalists (
) and shared with ARIJ and a large number of publishers around the
world within a project labeled as the Pandora Papers. The leaks mark
the biggest cross-border journalistic collaboration project in
history and include millions of documents from law firms about tax
havens. They also uncover assets, secret transactions and the hidden
fortunes of the rich, including more than 130 billionaires, more
than 30 world leaders, a number of fugitives or convicted people
alongside sports stars, judges, tax officials and
counterintelligence agencies.
The investigation reveals that Hassan’s companies in the British
Virgin Islands continue their activities despite the sanctions that
have been imposed/ continued their activities despite the sanctions
that had been imposed on him since the beginning of the Syrian
revolution. Moreover, Hassan established a new company in 2015. This
company specializes in real estate, which is one of his areas of
focus in Syria.
Although the financial authorities of the Virgin Islands knew the
identity of the owner of the companies, these were dissolved in
September 2017 in violation of European Sanctions Resolution
No
. (36) of 2012.
In the aftermath of the Syrian revolution, the European sanctions
list included a number of businessmen who are close to the Syrian
regime. The list included Samir Hassan “because of his close working
relationship with Maher Al-Assad, and because he is known for
funding the Syrian regime.”
European sanctions against Samir were renewed in September 2014. One
of the newly added reasons for his inclusion on the list was the
influence he has in the two Syrian companies, Emaar Group and
Al-Sham Holding. Hassan also has business relations with the cousin
of Syrian President Bashar Al-Assad, Rami Makhlouf.
Al-Sham Holding Company was launched in 2006 after Rami Makhlouf
announced his plans to launch a company that would bring together 70
investors of the most prominent Syrian businessmen. Makhlouf served
as the company’s vice president.
Emaar and Al-Sham Holding companies merged into one company called
“Emaar Al-Sham” with the aim of developing a number of multi-purpose
projects in the most significant Syrian regions.
The US Department of the Treasury singled out Al-Sham Holding and
issued a list of companies that “support the corrupt efforts of
reconstruction by the Assad regime.” In a statement issued in 2020,
the Department added that the company is supervising the
establishment of Marota City in the areas that were seized and
against whose development Legislative Decree No. (19) of 2015 was
issued.
In 2020, the Pro-Justice Foundation issued a
report
entitled “The Network of Businessmen to Fund the Syrian Regime and
Circumvent International Sanctions.” The report stated that Samir
Hassan manages the money of the Makhlouf family and of other people
close to the Syrian regime in their food import business activities.
The Russian International Affairs Council research center issued
another report which
highlighted
that Hassan’s investment in “the food industry is also vital during
the reconstruction of Syria because Hassan will be able to provide
materials and products needed to revive the agricultural sector, and
this is one of the largest contributors to Syria’s GDP.”
Even though the food industries are not covered by international
sanctions, the European sanctions resolution confirmed that Samir
contributes to the war effort by making cash donations to the
regime.
One of the reasons for the renewal of the sanctions against Samir
Hassan was that he headed the Syrian-Russian Business Council.
The Pro-Justice Foundation report indicates that Samir Hassan
“facilitates financial transfers to the regime through the Russian
Cobit companies, which include 158 major companies and which opened
a branch of the bank in Syria to solve this problem.”
About three months before the renewal of the European sanctions,
Samir was desperate to lift the European sanctions through his
lawyer while the European General Court
rejected
the case. In April 2015, this was followed by the approval of the
British Virgin Islands Financial Services Commission of the economic
sanctions imposed by the European Union on those connected to the
Syrian regime.
The Pandora Papers leaks, however, reveal that the opposite
happened; not only did Hassan’s companies continue their activities
in the Virgin Islands, but they also expanded through the
establishment of a new company.
A leaked document reveals that the Syrian businessman Samir Hassan
set up the Sunset company in the British Virgin Islands in November
2015 to carry out real estate and property related business
activities.
In the same month, Hassan was in the process of resigning as
director of Libra Investments Trading Limited, which was located in
the Virgin Islands while another leaked document reveals that in
July 2016 he owned 10,000 shares in the same company.
The same leaked document lists Samir Hassan’s address in Damascus
for those who hold most of the shares of Libra, which was
established in 2002.
In both companies, the Lebanese lawyer Tariq Makkawi obtained a
Power of Attorney to carry out banking transactions and to conclude
deals on their behalf, and this adds more mystery to the business of
the two companies.
The research on Makkawi showed that he is the founder of and a
partner in seven companies in Lebanon. He is also a member of the
board of directors of a company engaged in “negotiating and signing
contracts and agreements on operations and transactions implemented
outside Lebanon.”
The services provided by this company to the offshore companies
include “negotiating, signing contracts, shipping goods, and
reissuing invoices for operations outside Lebanon or for the customs
free zones heading to the country. This includes using the
facilities available in the customs free zone in Lebanon to store
imported goods for re-exportation purposes.”
Larissa Normanton is the Head of the Middle East and North Africa Division at Aperio Intelligence, which specializes in assessing transparency in economic transactions, says: “As US and European sanctions on Syria have increased over the past ten years, Syrian businessmen have taken advantage of Lebanon’s financial secrecy laws and offshore structures that have provided the transparency needed to operate front companies.”
We contacted Tariq Makkawi to learn about his role in facilitating Hassan’s circumvention of European sanctions, but he did not respond to us.
Tariq Makkawi is the eldest son of the Lebanese politician
Jamil Makkawi,
one of the founders of the Lebanese Najjadeh Party. Jamil Makkawi
held the
position
of Minister of Public Works and Transport between 1955 and 1956 and
Minister of Finance for a year from 1957 to 1958.
According to the registry of Lebanese companies, Tariq Mekkawi is a
partner with a number of businessmen in companies operating in
various activities in Lebanon.
The document leaked in April 2017 clearly indicates that the
ultimate beneficiary of Sunset is Samir Hassan. The document
included a declaration by the official in charge of reporting on
money-laundering activities at the law firm: He explains that the
person posing as the firm’s client, that is Hassan, is aboveboard
and that neither his character nor integrity or reputation conflict
with the firm’s standards. If such suspicion should arise, he would
inform the management immediately.
The same official had previously submitted a report in January 2017
to the Virgin Islands Financial Investigation Agency about
suspicious financial activities for three companies, including
Sunset.
The report was filed because Samir Hassan was the ultimate
beneficiary of the three listed companies of Libra Investments
Trading, Samya Investment Limited and Sunset Real Estate Properties
Limited. Hassan was on the European sanctions list that was extended
till June 2017. Two months before this date, the law firm employee
had pledged that he was not suspicious of the owner of Sunset.
In this way, the authorities came to know that Samir Hassan who is
on the sanctions list owns companies in areas under their
jurisdiction.
More than a year later, in March 2018, the Financial Investigation
Agency informed the law firm that it had completed its
investigation into the suspicious financial activity report
previously filed by the law firm and that it had referred the firm’s
report to the Virgin Islands Financial Services Commission.
However, a document issued by the Financial Services Commission in
April 2018 reveals that Samir Hassan’s companies were dissolved in
September 2017.
This violates Article (14) of European Union Resolution
No.
(36) of 2012 on restrictive measures on the Syrian regime stating
that “All funds and economic resources belonging to, owned, held or
controlled by the natural or legal persons, entities and bodies
listed in Annex II and IIa shall be frozen.”
Paragraph (i) of Article (1) of the European Sanctions Decision
explains that “'freezing of funds' means preventing any move,
transfer, alteration, use of, access to, or dealing with funds in
any way that would result in any change in their volume, amount,
location, ownership, possession, character, destination or other
change that would enable the funds to be used, including portfolio
management”.
For more than six years, Samir Hassan’s companies have escaped the
penalties of European and British sanctions and continued to operate
in the British Virgin Islands in peace despite a suspicious
financial activities report filed with the authorities by these
companies’ registry agents. The response of the British authorities
came too late after the companies “disappeared from the companies’
records.”