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Lebanon indicts ex-central bank governor Salameh over new alleged financial crimes

Created at 10 Aug · 1:38 PM1 source↑ Market-relevant
IN SHORT

A Lebanese judge indicted former central bank governor Riad Salameh and ex-Bank Audi head Samir Hanna for financial crimes including embezzlement and illicit enrichment. This marks an expansion of investigations into the private sector.

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Key Numbers

30years Salameh headed Lebanese Central Bank
$1 millionbail paid by Samir Hanna
$154 millionsuspected embezzlement in 2010
$102 millionsuspected embezzlement in 2012
13 monthsSalameh's previous detention
$14 millionrecord bail paid by Salameh previously

Who's Involved

Riad Salameh
Former governor of the Lebanese Central Bank, indicted for financial crimes
Samir Hanna
Former head of Bank Audi, indicted alongside Salameh
Lebanese Central Bank
Institution from which funds are allegedly embezzled
Bank Audi
Commercial bank whose former head was indicted
Accountability Now
Swiss foundation investigating Salameh
Karim Souaid
Current governor of the Lebanese Central Bank
Lebanon indicts ex-central bank governor Salameh over new alleged financial crimes

↳ Why This Matters

The indictment of Riad Salameh and Samir Hanna signals a significant step in Lebanon's efforts to hold former officials accountable for financial crimes amid a severe economic crisis. The expansion of investigations into the private sector could uncover further corruption and impact the stability of the Lebanese banking system.

Key facts

  • Former Lebanese central bank governor Riad Salameh has been indicted on charges of financial crimes.
  • Samir Hanna, former head of Bank Audi, was also indicted in the same case.
  • The charges include embezzlement and illicit enrichment, with allegations of bribery.
  • Salameh is currently in custody, while Hanna has been released on bail.
  • The indictment involves suspected embezzlement of $154 million in 2010 and $102 million in 2012.

A Lebanese judge has indicted former central bank governor Riad Salameh and Samir Hanna, the former head of Bank Audi, on charges of financial crimes including embezzlement and illicit enrichment. The indictment, issued on Monday, marks an expansion of investigations into Lebanon's financial sector, as it is the first time a commercial banker has been implicated in a case directly linked to Salameh.

According to a senior judicial source, the charges allege that Salameh and Hanna embezzled tens of millions of dollars from the Lebanese central bank. The source also indicated that Hanna is accused of bribing Salameh during his tenure as governor. Salameh, who led the central bank for three decades, has previously been indicted and arrested for other alleged financial crimes and has denied any wrongdoing.

Salameh is currently in custody and under medical supervision at a government hospital after missing a hearing. Hanna, 88, has been released on $1 million bail as investigations continue. In January, the current central bank governor, Karim Souaid, announced a criminal complaint against unnamed former officials and a lawyer for alleged illicit enrichment through misuse of public funds, involving offshore shell companies.

Accountability Now, a Swiss foundation investigating Salameh, stated on social media that the indictment pertains to the suspected embezzlement of $154 million in 2010 and $102 million in 2012. Salameh was previously detained for approximately 13 months over alleged financial crimes and released on a record bail of over $14 million. He also faces ongoing investigations in France, Switzerland, and Germany.

Frequently asked questions

Riad Salameh is the former governor of the Lebanese Central Bank, having served for three decades. He has been indicted on multiple charges of financial crimes.

Salameh and former Bank Audi head Samir Hanna are accused of embezzling tens of millions of dollars from the Lebanese central bank and illicit enrichment. Hanna is also accused of bribing Salameh.

This is the first time a commercial banker has been indicted in a financial crimes case related to Salameh, indicating that Lebanese investigations are broadening to include the private sector.

Salameh is in custody under medical supervision. Hanna has paid $1 million bail and is not in custody.

What Happens Next

01Further investigations into the financial dealings of Salameh and Hanna.
02Potential for additional indictments as investigations expand.
03Ongoing legal proceedings in France, Switzerland, and Germany against Salameh.

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Cadence

How It Developed

A Lebanese judge indicted former central bank governor Riad Salameh and former Bank Audi head Samir Hanna.
The charges include embezzlement and illicit enrichment, with accusations of bribery.
This is the first time a commercial banker has been indicted in a financial crimes case related to Salameh.
Salameh is in custody under medical supervision; Hanna paid $1 million bail.
The current central bank governor had previously filed a criminal complaint against unnamed former officials.
A Swiss foundation stated the indictment covers suspected embezzlement of $154 million in 2010 and $102 million in 2012.
Salameh faces separate investigations in France, Switzerland, and Germany.

Sources

T1
Lebanon indicts ex-central bank governor Salameh over new alleged financial crimesReuters

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