Lebanese judicial authorities have formally indicted former central bank governor Riad Salameh and a former commercial banker on charges of embezzlement and illicit enrichment, according to judicial sources cited by international news agencies on Monday.
The indictment, filed by a Lebanese judge, accuses Salameh and Samir Hanna, the former chairman of Bank Audi, of siphoning tens of millions of dollars from the Banque du Liban, the country’s central bank. The charges mark the first time a private-sector banker has been implicated in the sprawling corruption cases surrounding Salameh’s three-decade tenure.
Judicial sources told Reuters that the case also alleges Hanna paid bribes to Salameh while the latter served as governor. The investigation, which has already led to Salameh’s arrest and detention in previous cases, is now widening to include the private financial sector, the sources said.
Salameh’s legal troubles mount
Salameh, 76, led the central bank from 1993 until July 2023. He was taken into custody last month after failing to appear at a hearing related to this case, but he is currently receiving medical care at a government hospital on the outskirts of Beirut, under supervision.
Hanna, 88, has been released on $1 million bail while the financial investigation continues, according to reports. He has not yet publicly commented on the charges.
This is not Salameh’s first brush with the law. He was previously detained for roughly 13 months over allegations of financial crimes during his tenure, including embezzlement and money laundering. He was freed in September after paying a record bail of more than $14 million.
Salameh has consistently denied all wrongdoing, portraying himself as a “scapegoat” for Lebanon’s devastating economic collapse, which began in 2019 and has been widely blamed on his monetary policies.
Central bank’s own complaint
The new indictment follows a criminal complaint filed in January by Lebanon’s current central bank governor, Karim Souaid. Speaking to reporters, Souaid said the central bank had lodged a complaint against an unnamed former official, a former banker, and a lawyer over alleged illicit enrichment through the misuse of public funds.
Souaid said the operations were conducted through four offshore shell companies registered in the Cayman Islands, though he did not name the entities or the individuals involved at the time. The complaint appears to have laid the groundwork for the latest judicial action.
International investigations continue
Beyond Lebanon, Salameh faces scrutiny in several European countries, including France, Switzerland, and Germany. Those investigations focus on allegations that he accumulated vast personal wealth, including real estate and bank accounts abroad, through fraudulent schemes during his time as governor.
Salameh’s lawyers have repeatedly argued that he is being unfairly targeted for political reasons, but Lebanese prosecutors have pushed forward with multiple cases. The expansion of the investigation to include a private banker signals a more aggressive stance by the judiciary, which has faced criticism for failing to hold powerful figures accountable during the country’s financial meltdown.
Lebanon’s banking sector has been at the heart of the crisis, with depositors locked out of their savings since 2019. Many blame the central bank’s policies under Salameh for fueling hyperinflation and capital flight.
The indictment of Hanna, a prominent figure in Lebanon’s financial elite, could mark a turning point in public perceptions of the investigations. For years, critics have accused the legal system of shielding wealthy insiders from prosecution.
As the case proceeds, observers will watch whether the judiciary can secure convictions in a country where political interference and institutional decay have often stymied justice. Salameh’s medical condition and ongoing detention add further complexity to an already tangled legal saga.
For now, the former central bank chief and the ex-banker face the possibility of trial, even as Lebanon’s broader economic and political crises show no signs of abating.
