Former Lebanese Governor Riyad Salameh Arrested on Charges of Financial Crimes

Two judicial sources revealed that Riyad Salameh, the former governor of the Bank of Lebanon, was arrested on Tuesday on charges of financial crimes, including embezzlement and money laundering.

Salameh, 73, was questioned by Judge Jamal al-Hajjar, the cassation public prosecutor, for three hours before being arrested on suspicion of embezzling over $40 million from the Bank of Lebanon.

This is Salameh’s first appearance before the judiciary since his term ended on July 31, 2023. He faces charges of committing financial crimes, including money laundering, embezzlement, and illicit enrichment, which he denies.

During his 30-year tenure as governor of the Bank of Lebanon, the country witnessed a growing financial crisis and accusations of public fund theft. The Lebanese pound collapsed, following decades of corruption and unaccounted spending by the ruling elite.

Walid Abu Suleiman, CEO of Axis Capital Financial, stated that Salameh’s arrest was due to discrepancies between the submitted file and the constituted file by the French or German Judiciary. He added that the current file was suspicious of a local agency and a forensic audit of Alvarez and Marsal.

Abu Suleiman explained that the allegations centered on a consulting account, which the former governor of the Bank of Lebanon refused to provide information about. He stated that the company was working on behalf of the governor to buy and sell instant deposit and treasury bond certificates, earning profits and commissions beyond its normal scope.

The Lebanese judiciary decided to arrest Salameh due to these allegations, which are considered to be 90-100% beyond the normal scope of work. Salameh’s arrest marks a significant development in the investigation into financial crimes in Lebanon.