The first investigative judge in Beirut has ruled that Riad Salameh, the former governor of Lebanon’s central bank, will remain in detention while investigations into corruption charges continue. This decision follows an interrogation session that led to an arrest warrant against Salameh. Local media reports indicate that Salameh, who led the Banque du Liban (BDL) for three decades, was arrested on September 3 in Beirut for allegedly embezzling over $40 million from the central bank. The embezzlement allegedly involved transactions with the brokerage company Optimum Invest.
Investigations reveal that Salameh purportedly used the Optimum Invest account at BDL for personal profit and to conceal illicit operations. An investigative report indicated Salameh’s involvement in an arranged transfer of $42 million through various accounts that eventually landed in his personal account. The former central bank governor faces charges of embezzlement of public funds, robbery of government assets, falsification of records, and fraud.
Salameh is also seen as a central figure in Lebanon’s 2019 financial crisis, described by the World Bank as a pivotal element in the country’s economic collapse. This crisis led to hyperinflation, decreased spending power, currency depreciation, and the collapse of Lebanon’s banking system, causing millions to lose their life savings. The economic turmoil has resulted in the country facing the risk of being placed on the Financial Action Task Force’s “grey list” for countries monitored for anti-money laundering and terrorism financing deficiencies.
Internationally, Salameh has also been targeted: Interpol issued a red notice against him, and Canada, the UK, and the US have imposed sanctions due to corruption and personal enrichment allegations.
However, the legal process does not seem devoid of controversy. Local journalists reported irregularities during the latest session, revealing that the head of the Litigation Authority at the Ministry of Justice was not allowed to attend the interrogation. Reports circulated that potential procedural missteps might affect upcoming proceedings, with a second interrogation session scheduled for next Thursday to continue the investigation.
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