Caisse de dépôt et placement du Québec is under scrutiny for investing millions in three Qatari banks linked to terrorism financing allegations in the UK and the US. Legal actions involve claims that Qatar National Bank and Doha Bank facilitated funding for terrorist groups like al-Nusra Front and Hamas. Despite holding approximately $63.7 million in these banks, Caisse de dépôt maintains a minimal investment stance, highlighting its commitment to high operational standards while facing ongoing litigation.
Caisse de dépôt et placement du Québec’s Controversial Investments
The Caisse de dépôt et placement du Québec has made headlines by investing tens of millions of dollars into three Qatari banks that are currently embroiled in legal disputes concerning allegations of terrorism financing in both the United Kingdom and the United States.
Recent investigations have revealed that since 2020, at least two civil lawsuits have been initiated against Qatar National Bank, Doha Bank, and other associated individuals. The accusations suggest that these banks have facilitated funding for terrorist organizations, raising serious concerns about the implications of such investments for Quebecers’ savings.
Allegations of Terrorism Financing
In the UK, a group of nine Syrian businessmen has taken legal action against Qatar National Bank and Doha Bank, along with two Qatari nationals, including a Canadian of Lebanese descent and a relative of the Emir of Qatar. The plaintiffs assert that these entities acted on behalf of the Qatari government to funnel money to the al-Nusra Front, a group linked to al-Qaeda, during the Syrian civil war. They claim that a money laundering operation was orchestrated to support these activities.
In the United States, victims of terrorism have filed a lawsuit against Qatar National Bank and Masraf Al Rayan, alleging that these institutions provided financial support to Hamas and the Palestinian Islamic Jihad (PIJ). This lawsuit, filed in 2020, also includes claims against Qatar Charity, highlighting the serious nature of these allegations.
The Caisse de dépôt’s latest annual report indicates that it holds approximately $63.7 million in investments across these three banks. The Syrian victims have described severe abuses, including kidnapping, torture, and the murder of family members, purportedly at the hands of the al-Nusra Front due to their refusal to partake in alleged conspiratorial activities.
Moreover, it has been reported that Qatar’s involvement may extend to high-level attempts to suppress these allegations by intimidating the victims involved in the lawsuits. Eight of the nine businessmen have requested anonymity, fearing repercussions, while one individual was reportedly detained in Oman at Qatar’s behest.
“This case has been aptly described as terrifying,” noted the presiding judge, emphasizing the gravity of the claims without commenting on their factual accuracy.
The U.S. lawsuit also recounts harrowing incidents, including the tragic death of a 13-year-old American girl at the hands of a terrorist. Allegations suggest that the banks provided crucial financial support to terrorist organizations, disguised as charity donations. The lawsuit even references Youssef al-Qaradawi, a noted figure within the Muslim Brotherhood, who is said to have endorsed terrorist activities in Israel.
Details on the Banks Involved
**Qatar National Bank**
– The largest financial institution in Qatar
– Based in Doha
– 50% owned by the Qatar Investment Authority (a government entity)
– Sponsor of the French football club Paris Saint-Germain
– Holds $338 billion in assets
– Allegedly funneled significant funds to terrorist organizations
– Reportedly provided bank accounts for senior Hamas officials
**Masraf Al Rayan**
– Specializes in Islamic finance compliant with Sharia law
– Established in 2006
– 34% owned by the State of Qatar and affiliated entities
– $63.4 billion in assets
The Caisse de dépôt’s Stance
When approached for comments regarding the lawsuits, the Caisse de dépôt delayed its response. Eventually, Jean-Benoît Houde, the director of public relations, stated, “At all times, CDPQ expects portfolio companies to adhere to the highest standards wherever they operate.” He highlighted that the Caisse’s indirect investment is minimal, representing 0.1% or less of these banks.
Regarding the ongoing legal proceedings in the UK, Houde emphasized the organization’s intent to refrain from further comments while the case is active.
Additionally, the Caisse has made significant investments in Qatar, including a joint venture with the Qatar Investment Authority in an insurance group, valued between $300 and $500 million, shortly after the U.S. terrorism financing lawsuit was filed. This partnership further complicates the narrative surrounding the Caisse’s financial engagements in the region.