Lebanese prosecutors have indicted former central bank governor Riad Salameh and two lawyers on charges including embezzlement, forgery and illicit enrichment related to an alleged $44.8 million taken from a central bank "consultancy account." Salameh was detained for about 13 months, released after posting more than $14 million in bail, and remains under a travel ban. The indictment authorises broader probes into fund transfers that bypassed the central bank's Special Investigation Commission, and the central bank will act as a principal plaintiff in investigations into Forry Associates, controlled by Salameh's brother. International investigations in France, Germany and Switzerland are also ongoing.
Lebanon Indicts Former Central Bank Governor Riad Salameh Over Alleged $44.8M Embezzlement
FILE PHOTO: Longtime chief of Lebanon's Central Bank Riad Salameh, poses as he leaves office after a 30-year tenure, at Lebanon's Central Bank building in Beirut, Lebanon July 31, 2023. REUTERS/Mohamed Azakir/ File Photo
Lebanese prosecutors have formally indicted former central bank governor Riad Salameh and two lawyers on charges including embezzlement of public funds, forgery and illicit enrichment, judicial authorities said on Tuesday.
Details of the Indictment
A copy of the indictment issued by Beirut's indictment chamber, seen by Reuters, alleges that Salameh together with lawyers Marwan Issa el-Khoury and Michel John Tueni embezzled $44.8 million from what the document describes as a central bank "consultancy account." The chamber also approved a request from the financial public prosecutor to broaden investigations into how funds were moved into and out of banks without senior bank managers notifying the central bank's Special Investigation Commission.
Detention, Bail and Travel Restrictions
Salameh, who ran the Lebanese Central Bank for roughly three decades, was detained for about 13 months on suspicion of financial crimes alleged to have occurred during his tenure. He was released in September after posting a record bail of more than $14 million. He remains in Lebanon and is subject to a travel ban.
Related Inquiries And International Probes
The indictment follows earlier actions by the central bank, which filed a criminal complaint against a former senior central bank official, a former banker and a lawyer over alleged illicit enrichment through misuse of public funds. The central bank said it will act as a principal plaintiff in a state investigation into Forry Associates, a company suspected of receiving commissions from commercial banks and transferring them abroad. Forry Associates is controlled by Salameh's brother, Raja Salameh, who denies any wrongdoing.
Riad Salameh has also faced scrutiny abroad: French, German, Swiss and other authorities are investigating the Salameh brothers over alleged embezzlement. Separately, domestic allegations have suggested that more than $300 million may have been siphoned off between 2002 and 2015; Salameh denies the accusations.
What Comes Next
The indictment expands the scope of domestic investigations into fund transfers and institutional oversight lapses. Prosecutors have requested wider probes into movements of funds that bypassed the central bank's Special Investigation Commission, and the case could lead to further legal actions depending on the outcomes of the widened inquiries and international cooperation.
Reporting by Laila Bassam; Writing by Jana Choukeir; Editing by Mark Heinrich.
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