The devastation of the banking industry and corruption cases both domestically and internationally damaged the reputation of Riad Salameh, the former governor of Lebanon’s central bank who was detained on fraud charges.
Riad Salameh, 74, lost credibility as a result of the financial crisis that devastated Lebanese citizens and prevented the majority of savers from accessing their savings in the once-vast banking industry he oversaw.
He was widely considered as the cornerstone of the financial system until its collapse in 2019. During his three decades in office, he embezzled millions of Lebanese public funds, and his reputation was further damaged when several European countries started looking into whether he had abused his position to do so.
In connection with multiple investigations, he was detained, according to a senior legal source in Lebanon, on suspicion of money laundering, fraud, and embezzlement connected to the Lebanese brokerage company Optimum Invest.
The CEO of Optimum told Reuters that the company did a financial audit of its dealings with the central bank earlier in 2024 and that no proof of misconduct on the part of the company was discovered.
The enquiry is distinct from earlier reports of corruption probes focused on commissions that the central bank levied on banks in exchange for government securities, with the money raised going to Riad Salameh’s brother Raja’s company, Forry Associates.
These enquiries started with a Swiss investigation into potential illegal transfers of over USD 300 million from the central bank between 2002 and 2015 involving Riad Salameh and his brother Raja.
The Salameh brothers have consistently denied any wrongdoing and have refuted claims of misappropriating or laundering any public funds.
After telling Reuters that he had “worked according to the law and respected the legal rights of others,” Riad Salameh resigned from his position in July 2023.
A month following his resignation, Riad Salameh was subject to sanctions imposed by the United States, United Kingdom, and Canada.
The accusations against him included claims of corrupt practices aimed at enriching himself and his associates, which he refuted at the time.