France Finds Syria’s Rifaat al-Assad Guilty of Money Laundering

On June 17, a French court found Rifaat al-Assad, the 82-year-old brother of former Syrian President Hafez al-Assad, guilty of money laundering. The judiciary  sentenced him to four years in prison and he will have all his French and London-based properties seized after he used Syrian state funds to purchase the real estate.

Court case

According to the court documents, between 1984 and 2016, al-Assad acquired property in some of France’s most prestigious neighborhoods and amassed a fortune of roughly $113 million. The French court established that much of al-Assad’s wealth came from Syria, even as he himself claims the Saudi king had offered the fortune as a gift.

Spanish authorities, in a 2017 anti-money laundering operation, seized 500 of his properties estimated to be worth roughly $785 million.

Al-Assad will appeal the sentencing and will not enter detention until his appeal has been processed. Bashar al-Assad’s uncle was also ordered to pay $33,680 to Sherpa and Transparency International France, the two anti-corruption NGOs that first brought al-Assad’s practices to the attention of the French court in 2013.

Sherpa’s lawyer, Vincent Brengarth, told Reuters that “this ruling shows that nobody escapes justice and there is no impunity.”

Rifaat’s past

Rifaat al-Assad was listed as Syria’s vice president until 1998, but lost most practical political power after being accused of a 1984 coup attempt when his brother, Hafez al-Assad, was suffering from heart problems. The Assad-aligned Alawites had been excluded from a council entrusted with ruling Syria, leading some high-ranking officers to throw their support behind the president’s brother, Rifaat.

Rifaat al-Assad led an army of 55,000 to take control of Damascus and disarm Syrian troops but Hafez used his seniority in the Assad family and his recovery to force Rifaat and his allies to abandon the coup attempt. According to News Arabia, Rifaat left for exile with $300 million of Syrian state funds, which he later claimed was a gift from the then-crown prince of Saudi Arabia, Prince Abdullah.

Palace intrigue

Similar to the current palace intrigue over the Makhlouf family, Rifaat had access to state funds through the business empire of his son, Sumer. Like Rami Makhlouf, Sumer was part of the business elite that ensured the Assad family received a cut of all economic activity in the country.

When Bashar al-Assad succeeded his father in 2000, Rifaat positioned himself as the logical successor to the Syrian presidency after having held the vice presidency for decades. But his claims while exiled in France produced no significant opposition to Bashar, who ascended to the presidency as their father had intended.

Rifaat became known as the “butcher of Hama” for his part in the bombardment of Hama, where thousands of civilians died. He had called for Bashar to step down during the Syrian civil war but his little remaining influence proved to be insufficient to achieve his objective.

Syria’s Ailing Economy Draws Protesters Back to the Streets

Syria is in the grips of a deepening economic crisis, fuelled by US and European sanctions, plus neighboring Lebanon’s dramatic financial decline and associated currency crash.  

The Syrian pound followed its Lebanese counterpart this week and crashed spectacularly, sending the cost of living through the roof and sparking fears amongst ordinary Syrians of an impending famine.  

Syrian Pound in trouble  

The Syrian pound traded at 47 pounds to the dollar prior to the country’s bloody civil war, but has now hit 3,000 pounds to the dollar. The currency had been on an even-paced decline until last week. From Saturday to Monday the parallel exchange rate skyrocketed from 2,300 to 3,000 pounds to the dollar where it was still hovering on Wednesday.  

The head of Lebanon’s money-changing syndicate, Mahmoud Murad, said the plunging Syrian and Lebanese currencies are “surprising and incomprehensible,” but the two economies are intrinsically linked. “They are twins,” he explained to Arab News on June 11.  

“What affects the Lebanese pound affects the Syrian pound, and vice versa. The dollar exchange rate in Syria suddenly jumped to 3,500 pounds before unexpectedly dropping to between 2,600 and 2,700 pounds.  

“We do not know why. Has someone poured US dollars into the Syrian market to cause this drop? Where did these dollars come from? It is strange,” Murad said.  

As of this week, the Syrian pound has lost 80% of its value in the last 12 months alone. The worrying trend is concerning all levels of society, pushing some Syrians back to the streets for the first time since the 2011 Arab Spring protests that descended into civil war. 

Protests entered their fourth day on Wednesday, and have spread to the majority Druze city of Suweida. Demonstrators started with economic slogans, but in Suweida, which has largely been exempt from the conflict, openly called for Al Assad’s downfall. 

“Protesters called for freedom and toppling of the regime as a result of popular anger over the deteriorating economic, social, security and political situation,” Syrian activist Noura al Basha told Reuters on Thursday. 

Soaring Cost of Living 

The sudden currency crash has sent the price of basics like bread through the roof, pushing more Syrians into poverty and hunger.  

“Prices are through the roof. Every day… it’s more expensive than the day before,” Damascus mother of five Lamees al-Sheikh told the French Press Agency (AFP).

“I’m scared one day I’ll… come back home empty handed.” 

Business owners are also worried by the fast-developing situation, and say that even after raising prices, they cannot make money.

“There is one exchange rate in the morning, and another one in the afternoon,” said grocery store owner Rashed Umari from Qamishli in the north. “Everything we sell is at a loss.” 

Meanwhile, Al Assad replaced Syrian Prime Minister Imad Khamis Thursday, according to state media. Al Assad is yet to provide an explanation for Khamis’ downfall, but the move indicates the growing civil unrest and economic problems are also being felt in the upper echelons of Syrian politics. Given the interlinked nature of the Syrian and Lebanese economies and ongoing sanction pressure, it is unclear how Al Assad can reboot Syria’s ailing economy and how the war-weary Syrians will respond to the unfolding situation.

Read also: Despairing Domestic Workers Dumped at Ethiopian Consulate in Lebanon