Guernsey financial adviser hid millions for the uncle of ousted Syrian president, report reveals
The uncle of Syria's former president - known as the "butcher of Hama" - used a Guernsey adviser to secretly manage his wealth, a joint investigation has revealed.
Rifaat al-Assad, the uncle of Bashar al-Assad, collaborated with Guernsey financial consultant Ginette Louise Blondel to manage millions of his funds.
The joint investigation from The Guardian and The Bureau of Investigative Journalism reported Rifaat's wealth included "a large European property empire worth hundreds of millions of euros that prosecutors claim was acquired with funds looted from the wartorn state."
It comes as Guernsey waits for the results of an assessment conducted by anti-money laundering body, Moneyval.
Rifaat al-Assad is the uncle of former Syrian leader, Bashar al-Assad, who was overthrown by the rebel offensive, ending the Assad family's 50-year iron rule on Sunday 8 December.
Rifaat has been dubbed the "butcher of Hama" for what the report describes as "his alleged role overseeing the unlawful imprisonment, torture and execution of between 10,000 and 40,000 people in 1982".
In March 2024, Ginette Blondel was fined £210,000 and banned from the industry for nine years after she knowingly worked for an "alleged war criminal" - however it was not clear who this was.
The unnamed man - named Client 1 - was described as "high-risk" and "an alleged war criminal".
It followed a two-and-a-half-year investigation by Guernsey's Financial Services Commission (FSC) which ruled that Ms Blondel "consistently failed to understand the gravity and consequences of her actions" and "caused reputational damage to the Bailiwick as an international finance centre".
On one occasion, the investigation uncovered that Ms Blondel received €1 million into her personal bank account from a company owned by Client 1 to set up a proposed Guernsey trust company.
This did not go ahead and Ms Blondel instead used the money to make more than 150 payments to multiple third parties on behalf of her client.
The FSC believes this "led to a very real risk that Ms Blondel may have been used to launder the proceeds of crime, a risk which Ms Blondel has consistently failed to recognise".
A statement from the States of Guernsey - the island's government - reads: "As a jurisdiction, Guernsey takes money laundering, proliferation financing and any other unlawful conduct in the financial sphere extremely seriously. The systems we have in place for regulation and law enforcement reflect this stance.
"In this specific case, the Guernsey Financial Services Commission – the local regulator - took serious action against this individual, handing down a very large fine and a ban from working in the industry.
"However, as people working in the law enforcement sector are well aware, the evidential threshold for a criminal prosecution and the threshold for a regulator to take action are very different.
"Guernsey’s Economic & Financial Crime Bureau (EFCB) does not comment on investigations relating to a named individual. However, as a general comment, the EFCB investigates all matters diligently and in accordance with the law where there is any suspicion of criminal activity.
"As part of the Bailiwick of Guernsey’s long-term commitment to this area, we have a National Strategy for combatting financial crime. This is a published document, despite there being no requirement within the FATF standards to publish a national strategy, as we consider it important to articulate our position for the benefit of domestic and international stakeholders.
"This strategy and the joint efforts of our regulator and law enforcement agencies ensure we are a modern and well-regulated finance jurisdiction. This case is evidence of our strategy's effectiveness, with regulatory and law enforcement authorities working together and ensuring action is taken where it is possible to do so."
ITV News has reached out to Ms Blondel for comment.
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