Inside a Dark Pact: Background and evolution of a scheme
Lafarge’s decision to keep its Syrian cement plant running during the Syrian Civil War led to secret dealings with armed groups, including U.S.-designated terrorist organizations, triggering one of the most significant corporate accountability cases of the past decade.
In 2022, Lafarge pleaded guilty to providing material support to terrorist groups after the U.S. Department of Justice (DOJ) found it had funneled nearly $6 million to the Islamic State of Syria (ISIS) and the al-Nusra Front (ANF) using U.S. financial systems and email services—the first corporate case of its kind in the U.S.
Lafarge’s Syrian plant started unassumingly, but the ordinary venture soon entangled the company in serious legal and ethical challenges.
Related articles
-
In-depth reportInside a Dark Pact: A timeline of events
Amid Syria’s descent into civil war, Lafarge’s quest to keep its $680 million cement plant running led to secret deals with terrorists—and ultimately, a historic U.S. Department of Justice prosecution for aiding ISIS.
-
In-depth reportInside a Dark Pact: Danger of their own making and a critical series of missteps
Paris-based cement maker Lafarge thought it was saving a plant—instead, it built a pipeline to the Islamic State of Syria.
-
In-depth reportInside a Dark Pact: Lafarge’s terrorist funding and compliance fallout in Syria
Compliance Week’s latest case study investigates French cement maker Lafargeʼs collapse into criminal conduct detailing how sidelining ethics and compliance can lead companies into dangerous territory. What began as “local concessions” ended in funding terrorism—and a historic legal and reputational disaster.
More from Case Studies
-
PremiumNavigating top risks in the insurance industry
Cyber threats, climate-related catastrophes, and disruptive technologies remain top risks reshaping the U.S. insurance industry. The question is how chief risk officers at the nation’s largest insurers are confronting them.
-
NewsChapter 4: Investigations into misconduct: What banks can do
Both JPMorgan Chase and Deutsche Bank retained their respective Jeffrey Epstein relationships for too long. Yet, there is a case to be made for why exiting a high-risk relationship too soon can become an inverse form of recklessness.
-
NewsChapter 3: Egregious failures: Customer due diligence and transaction monitoring
Why did JPMorgan Chase retain Jeffrey Epstein for more than a dozen years? How did the relationship persist despite glaring red flags? The “why” is straightforward; the “how” is more complicated.