Former Central Bank Chief Charged With Financial Crimes

A former bank chief in Lebanon was arrested this week on charges relating to corruption and financial crimes.

On Tuesday, three judicial officials in Lebanon announced that Riad Salameh, the former governor of Lebanon’s central bank, was detained after he was questioned on several corruption cases. Salameh began serving as the head of Lebanon’s central bank in 1993 and held the position for 30 years until his resignation in 2019.

Although Salameh was once hailed for his role in Lebanon’s economic recovery after a 15-year civil war, he left his position last year under a cloud of suspicion, with multiple European countries investigating his alleged financial crimes. Many in Lebanon blame him for the country’s financial crisis that began in late 2019.

However, Salameh has denied any wrongdoing in the corruption cases, as well as denied other allegations of illicit enrichment and embezzlement. Salameh claims that he made his money through inherited properties, a previous job as an investment banker with Merrill Lynch and other investments.

Salameh was questioned for over three hours on Tuesday by the top public prosecutor, Judge Jamal Hajjar, according to three officials who spoke on condition of anonymity because they were not authorized to speak to the media.

Salameh was reportedly asked about several financial issues, including allegations that he hired a company called Optimum to manipulate financial statements and conceal Lebanon’s significant financial losses.

The officials who spoke anonymously said that Salameh was transported by Lebanon’s Internal Security Force to a higher security prison, The Associated Press (AP) reported. However, the officials did not provide any further information on the transfer, and Salameh will remain in custody as interrogations continue.

Salameh has been one of the most criticized officials for the policies that contributed to Lebanon’s economic crisis, which has caused the Lebanese pound to lose about 90 percent of its value against the U.S. dollar and triggered triple-digit inflation.

Salameh has previously faced sanctions from the U.S., Canada and the United Kingdom. His close associates have also been sanctioned, and France previously issued an International arrest warrant for Salameh. He has remained free as Lebanon does not extradite their own citizens.

Other nations, including Germany, France and Luxembourg, have also investigated Salameh and his associates for similar financial crimes.

Salameh has dismissed the European investigations, claiming they are part of a media and political campaign aimed at making him a scapegoat.

Lebanon has yet to appoint a new central bank governor, with Vice Governor Wassim Mansouri serving as acting governor. The crisis-stricken country has also been without a president for nearly two years and is currently governed by a caretaker cabinet with limited powers.

This article includes reporting from The Associated Press.