The Caisse de dépôt invests in banks prosecuted for financing terrorism

The Caisse de dépôt et placement du Québec has invested tens of millions of dollars in three banks in Qatar, in the Middle East, which are being prosecuted for financing terrorism in England and the United States.

According to information obtained by our Bureau of Investigation, at least two civil suits have been filed since 2020 against these three banks on which Quebecers’ nest egg has set its sights.

• In England, nine Syrian businessmen filed an appeal against the Qatar National Bank, the Doha Bank and two individuals established in Qatar, namely a Canadian of Lebanese origin named Christian Comair and the brother-in-law of the Emir of Qatar. The accused parties are alleged to have acted on behalf of the State of Qatar to direct funds to the Nusra Front (affiliated with al-Qaeda) during the civil war in Syria. A money laundering scheme was allegedly put in place for this purpose.
• In the United States, American and Israeli victims of terrorism filed suit in 2020 against Qatar National Bank and Masraf Al Rayan Bank, in addition to suing an organization called Qatar Charity. They allege that these institutions financed Hamas and the Palestinian Islamic Jihad (PIJ) group.

In its latest annual statement, the Fund reports investments of around $63.7 million in the three Qatari banks targeted by the appeals (see table).

In the Syrian case, the alleged victims “say they suffered from kidnapping and torture, the killing of family members, the destruction of their property and livelihoods, and other forms of ethnic and religious persecution in Syria in the hands of the Nusra Front because they refused to participate in the conspiracy,” Law.com reported in October. The British daily The Telegraph also made the same allegations.

The State of Qatar itself is allegedly involved at the highest level in this matter and recently attempted to recruit the alleged victims’ lawyer to cover up the affair, according to reported allegations. Eight of the nine businessmen requested anonymity before the Court for fear of reprisals. The only named businessman was arrested in Oman last July, also allegedly at the instigation of Qatar.

It’s a case that has “correctly been described as frightening,” the judge overseeing the case said. “It’s fair to say that this is the kind of case that gives someone sleepless nights,” he continued, without commenting on the veracity of the allegations.

In the other file, it concerns in particular a 13-year-old American girl who was stabbed to death in her home by a terrorist and several other macabre scenes.

The banks being sued allegedly played a central role in financing terrorism in Israel, including providing valuable US currency to Hamas and PIJ (under the guise of fake charitable donations), it is alleged. The American prosecution filed photos of Youssef al-Qaradawi, a spiritual leader of the Muslim Brotherhood (died in 2022), who allegedly served on the Sharia advisory board of the Qatar National Bank, in addition to being very close to the Emir of Qatar.

“Qaradawi officially gave his religious imprimatur to terrorist attacks in Israel,” the suit alleges.

QATAR NATIONAL BANK

• Largest bank in Qatar
• Head office in Doha
• 50% owned by the Qatar Investment Authority (entity of the Qatar government)
• Sponsors the French soccer team Paris Saint-Germain
• US$338 billion in assets
• Reportedly transferred considerable sums to terrorist organizations
• Would have provided bank accounts to several senior Hamas officers in particular

THANK YOU AL RAYAN

• Bank specializing in Islamic finance (compliant with Sharia principles)
• Created in 2006
• 34% owned by the State of Qatar and related entities
• $63.4 billion in assets

THE CAISSE DE DÉPÔT IS SINGLE OF COMMENTS

Questioned on October 11 by our Investigation Office about the actions taken, the Caisse de dépôt finally answered our questions two weeks later.

“At all times, CDPQ expects portfolio companies to respect the highest standards wherever they operate,” indicated Jean-Benoît Houde, director of public relations. He added that “CDPQ’s participation, on an index basis, represents 0.1% or less of these banks.”

The latter went on to say about the suit in England that “since the matter is before the courts, we will not make any additional comments.”

Partner of the Qatar sovereign wealth fund

Note also that in addition to its investments in banks and other companies in Qatar, the Caisse de dépôt announced in November 2020 (a few months after the filing of the suit for financing terrorism filed in the United States) a joint investment with Qatar’s sovereign wealth fund, the Qatar Investment Authority, in an insurance group.

The value of this investment was estimated between $300 and $500 million in the last annual report.

Note also that QNB Group (Qatar National Bank) is 50% owned by the Qatar Investment Authority.

THE SUED BANKS DEFEND THEMSELVES

Qatari banks targeted by terrorism financing lawsuits are defending themselves.

“While QNB condemns all acts of terrorism, this dispute [la poursuite aux États-Unis] is a misguided effort, which the courts have repeatedly rejected, to assign liability to a respectable bank doing business in the Middle East for no other reason than that it provided basic banking services to its customers in the Middle East. region,” she said in a document filed in court.

The bank stressed that no allegation in the appeal speaks of any specific act of the bank which would be directly or indirectly linked to the violent acts reported.

Qaradawi

Regarding Youssef al-Qaradawi, the QNB argued in particular that the prosecution did not prove that the bank was aware of the alleged links between him and the terrorist groups Hamas and PIJ.

Masraf Al Rayan, for her part, considered that she could not be held legally responsible for the attacks, which she also said she condemned.

In the other appeal in England, the accused parties denied the allegations of terrorist financing and said they had no knowledge of any attempt at intimidation, it was reported in the press.

A lawyer for Qatar National Bank told Law.com that he believes this is an attempt to resurrect a previous case of Qatar financing terrorism, which a judge would have thrown out based on what States enjoy legal immunity in this regard.

THE FUND’S INVESTMENTS

QATAR NATIONAL BANK: 52,7 M$

DOHA BANK: 0,6 M$

EXPENSES AL RAYAN: $10.4 M

Source: 2023 annual report