It was a long-expected move. The powerful former Lebanon Central Bank Governor Riad Salameh has been arrested and charged with embezzling $42 million in public funds, part of a broader $110 million fraud case. His detention comes amid ongoing domestic and international investigations into financial misconduct during his controversial three-decade tenure. In 2022, the European Union Agency for Criminal Justice Cooperation (Eurojust) froze assets worth €120 million tied to Salame.
Key Points:
- The Target: Riad Salameh, former governor of Lebanon’s central bank, was arrested on September 3, 2024, and charged with embezzlement, money laundering, illicit enrichment, and forgery.
- The Charges: The charges are linked to the alleged embezzlement of $42 million.
- The Background: Salameh, 73, concluded his three-decade tenure as governor of the central bank in July 2023 amid significant controversy. He is widely blamed for Lebanon’s severe economic crisis that began in late 2019.
- International Charges: In addition to the domestic charges, Salameh faces investigations in multiple European countries for financial misconduct. The US, UK, and Canada imposed sanctions. An international arrest warrant issued by France
Short Narrative:
Riad Salameh, the former governor of Lebanon’s central bank, has been arrested and charged with multiple financial crimes, including embezzlement of public funds and money laundering. The charges stem from a broader investigation into the Optimum case, which involves the embezzlement of over $110 million from Lebanon’s central bank. Salameh was questioned for hours before being detained.
As of now, he remains in preventive detention while an investigating judge gathers evidence that could lead to trial. Salameh, who ended his 30-year tenure as governor in July 2023, has been widely criticized for his role in Lebanon’s economic collapse. OCCRP called Salameh the “Offshore Governor.” Offshore companies he owned have quietly invested in overseas assets worth nearly US$100 million.
Actionable Insight:
Salameh’s case highlights the need for stringent oversight in financial governance, especially in countries experiencing economic turmoil. Investigators should focus on tracking the flow of embezzled funds and closely coordinate with international authorities already probing Salameh’s financial activities in Europe. The case could set a precedent for holding high-ranking officials accountable for economic mismanagement.
