Assad's aunt wants to withdraw millions of dollars in Switzerland

The old elite surrounding deposed dictator Bashar al-Assad has deposited huge sums of money in Geneva. The court ruling reveals the name of the bank and the authorities' response.

Andreas Maurer/ch media

On December 8, Syrian dictator Bashar al-Assad fell after a 24-year reign of terror. The next day, the Federal Administrative Court of St. Gallen made a decision that suddenly became explosive.

Three judges (centre, SVP and senior judge) put on the table the complaint filed by Assad's aunt against the Swiss Ministry of Economic Affairs. The elderly woman wanted to go to Dubai and claim millions of dollars she had frozen in Switzerland.

The case shows how Swiss authorities cracked down on the financial dealings of Syrian clans and provides insight into a powerful family system.

Assad's aunt Ghada: a regular old woman?

Ghada Adib Mana is 76 years old. “I live a quiet life consistent with that of a woman my age,” she wrote in the complaint. She no longer has anything to do with Syrian politics and economics. The sanctions against her were not justified solely by her family members.

She is the widow of Bashar al-Assad's uncle Mohammed Makhlouf. He is the patriarch of the powerful Makhlouf family. This controls the economics of the dictatorship, while Assad controls the politics.

In 2011, the regime suppressed the Arab Spring protest movement, triggering civil war. At that time, the Federal Council immediately took over EU sanctions against the Syrian elite and froze their funds. Switzerland hopes to put pressure on the regime to make it more difficult for security agencies to raise funds.

Makhlouf is one of the richest men in the country and therefore a central figure on the sanctions list. He died of COVID-19 in 2020 at the age of 87. In Switzerland, he left several accounts at the Geneva branch of British private bank HSBC. He co-owns one of them with Ghada Mhana. When he died, she gained control.

Two years ago, she wanted to withdraw her funds, leave Syria and begin the final chapter of her life in Dubai. This is how she described her plan in a complaint filed with the Federal Administrative Court. But at this time in 2022, the EU and Switzerland also imposed sanctions on them. The Geneva account was frozen as a result.

Image: imago stock&people

The government wants to prevent Makhlouf's money from being passed on to the next generation. The sons took over the patriarch's place. They did sign a waiver stating that they did not need any funding from Switzerland. But authorities remain concerned that millions of dollars in 2023 Geneva accounts could be misused to commit atrocities committed by the regime.

Ghada Mhana argued unsuccessfully to have lived an autonomous life since 2016. Thereafter, her husband lived with his second wife and her son. It would be arbitrary if Switzerland withheld her Swiss assets simply because of her status as a family member.

However, the Federal Administrative Court responded in its ruling that in this case, it was actually enough to become a member of the Makhlouf family under the terms of the sanctions. Because they control Syria's economic system. The Swiss court said Ghada Mhana remained married to the patriarch and maintained ties to his financial system despite her separation. It therefore dismissed the complaint.

It is difficult for outsiders to understand the Syrian system. Most clan members don't even post photos online because they exercise power cautiously. The exceptions are grandsons Muhammad and Ali, who flaunt their wealth on Instagram.

Nonetheless, the Federal Administrative Court is well aware of the power networks of Syria’s old elite. Because it has revealed the flow of their money in several cases. They are oligarchs from the Assad-Makhlouf family, who also tried unsuccessfully to sue over their frozen assets in Switzerland.

Assad's uncle Mohammed: He came to power after the coup

Mohamad Makhlouf was an ordinary employee of Syrian Airlines in the late 1960s. But when his brother-in-law Hafez al-Assad came to power in a 1970 coup, Makhlouf suddenly came to power. He obtained a state monopoly and took control of Syria's oil resources, the National Tobacco Authority and the Syrian National Bank.

Mohammad MakhloufImage: Facebook

In 2002, he opened his first account with HSBC, a private bank in Geneva. He holds a diplomatic passport and his status is “Minister of Economic Affairs.”

Ten years later, the Swiss Ministry of Economic Affairs used this copy of the ID against him. In 2012, Makhlouf claimed before the Federal Administrative Court that he did not support the Syrian regime and had no influence over it. But if that were the case, it would be difficult for him to have a diplomatic passport.

Authorities also accused him of questionable financial dealings: When Switzerland imposed sanctions, he quickly tried to withdraw $10 million from a Geneva account. He declared it an “investment” in Syria. His then wife Ghada Mhana was the original recipient. But the bank intervened promptly and froze the funds – until today.

Assad's cousin Rami: He is the richest man in Syria

Rami Makhlouf, 55, is the son of Mohammad Makhlouf and the cousin of Bashar Assad. Rami himself tells the story of his classic dishwashing career. He started his career in a duty-free shop in Damascus and due to its success he opened seven more branches. In 2000, he established the network of mobile phone provider Syriatel and established himself as the market leader.

The information is not wrong, but the picture it gives is distorted. In fact, he owes everything to a corrupt system. When the old dictator Hafez al-Assad died in 2000 and passed power to his son Bashar, the economic power of the Makhlouf family was also passed to the next generation.

Rami Makhlouf received an exclusive license for its duty-free shop network, which organizes the movement of goods across the country. The establishment of Syriatel is also only possible with government permission. He also controls aviation, oil, construction, import and real estate companies.

Rami MakhloufBild: Facebook

Rami Makhlouf became the richest man in Syria in the 2000s. Estimated net worth: $3 billion. As the Federal Administrative Court found in a 2015 ruling, he was a member of Assad's entourage and was responsible for the country's economic management. The move confirms the sanctions against him and denies him access to his accounts in Switzerland, which are held in francs.

In 2020, an extraordinary event occurred: Rami Makhlouf lost the support of the Syrian regime. According to media reports, the reason was a dispute with the Syrian first lady, who demanded higher profits from the Makhlouf family. She faced pressure from Syrian businessmen and barely made any money.

Rami Makhlouf subsequently opened a Facebook account and posted video messages critical of the regime. He also revealed that sanctions can be easily circumvented using front companies.

Assad's cousin Hafez: He's a guy who likes rough things

Rami's brother Hafez Makhlouf (another cousin of Assad) is also on the sanctions list and, according to the Federal Court's ruling, has deposited 3 million francs with HSBC in Geneva. When he wanted to free his funds, he presented himself to the Swiss Ministry of Economy as a harmless person.

British Private Bank headquarters in Geneva.Image: KEYSTONE

He leads the smallest unit of the Syrian secret service and pursues a noble mission. He even received praise from Novartis for taking action against counterfeit drugs. He showed a document from Novartis. However, the Federal Administrative Court revealed this to be false.

In fact, according to the verdict, he held a senior position in the repressive apparatus. An intelligence strongman, he led militias to suppress demonstrations. They had explicit orders to kill (“shoot to kill”).

Assad's sister Bushra: Why did she move to Dubai?

An important member of the Assad family also has assets parked in Switzerland: Assad's sister Bushra Assad. She is considered much smarter than her four brothers.

However, when the civil war broke out, she traveled to Dubai to ask Switzerland to lift sanctions against her. She argued that her departure showed she was distancing herself from the regime.

However, in 2014, the Federal Administrative Court contradicted her, saying her main concern was providing a better education for her children, and dismissed her complaint.

The end of power: The hunt for the old elite has begun

On December 8, Assad fled to Moscow on a private plane, leaving behind the Mukraf family. One of Assad's cousins, Ihab Makhlouf, tried to drive to Beirut in a large BMW. But rebels stopped him at a checkpoint and shot him dead. Photos showed his car riddled with bullets.

Some members of the family fled to Dubai before the change of power and are now emerging as regime critics. However, they have previously claimed they have no influence based on circumstances. As the Swiss court ruling proves, this is a lie.

The family members who went to court in Switzerland were not just affiliated with the same bank. Nearly all of them have the same lawyer: Eric Hess from Geneva. Asked whether he was still in contact with Aunt Assad and could obtain her statement, he responded in his usual sentence: “I respect professional confidentiality and will not make any comments.” (aargauerzeitung.ch)