Tag: Salameh

Lebanon Still Plagued by Corruption Issues.

Recently, the Lebanese central bank head has been summoned back to the country for questioning. According to a report by AP News, Riad Salameh is facing many financial crimes, including, but limited to, illicit enrichment and money laundering of $330 million. Salameh is facing possible investigations in Germany, Luxembourg, France, and Lebanon. A report by the Washington Post suggests that Lebanon may not send Salameh over to French authorities despite France issuing an Interpol warrant for Salameh’s arrest. The legal wrangling over Salameh appears to be unresolved for some time.

Along with Salameh’s travails, Lebanon has been “grey listed” by the Financial Action Task Force (FATF). FATF will closely monitor Lebanon’s efforts to combat money laundering and other financial crimes. According to a report by Reuters, Lebanon scored as only partially compliant in enacting money laundering laws and transparency regarding shell companies. This is another blow to an economy already suffering from high inflation post-COVID-19. Lebanon has much to do if it wants to make progress in eradicating corruption.     

Allegations of Corruption at The Lebanese Central Bank.

Recently, allegations of embezzlement, money laundering, and illicit enrichment have been leveled at the head of the Lebanese central bank Riad Salameh, his brother Raja, and an advisor to Riad. According to an article by the BBC, Salameh and his brother allegedly stole $300 million from Banque Du Liban between 2002 and 2015. Lebanon is a country that, in recent years, has been in the grip of a prolonged recession. According to statistics in the BBC article, 80 percent of the population in Lebanon lives in poverty. A report in Reuters stated that Salameh and his brother allegedly funneled the stolen money through a shell company called Forry Associates based in the British Virgin Islands. It was alleged that a large portion of the funds stolen was used to purchase real estate in European countries.

The Swiss Financial Market Supervisory Authority (FINMA) announced that it was investigating twelve banks that are thought to have aided Salameh in his misdeeds. FINMA recently froze the Swiss assets of Salameh. Several well-known banks, such as HSBC, where Salameh holds an account, could be caught up in the investigation. The situation regarding the charges Salameh faces in Lebanon is more complex. An article by The National News, an English-language newspaper based in the United Arab Emirates, reports that Raja Hamoush, the public prosecutor for Beirut, confirmed that Salameh was being charged with embezzlement, money laundering, and illicit enrichment. In a separate article by The National, another investigation of similar scope was started in 2021 by Lebanese judge Jean Tannous. This appears to be a tangled legal web that will take some time to resolve if it gets sorted out.