Lebanon’s Central Bank Governor, Riad Salameh, Accused of Using Fake Bank Statements in Money Laundering Case
France Initiates Preliminary Investigation
In a developing financial scandal, Lebanon’s central bank governor, Riad Salameh, is under preliminary investigation in France for suspected fraud and money laundering. According to French court documents obtained by Reuters, the accusations center around Salameh’s use of forged bank statements to conceal his wealth.
Plans to Formalize Accusations
Documents forwarded to Salameh ahead of a scheduled hearing on May 16 suggest that French prosecutors intend to formally accuse him of the offenses during this session. Salameh, who is currently in Lebanon, has yet to comment on the allegations.
Previous Denials of Fraud and Money Laundering Charges
Salameh, 72, has consistently denied allegations of fraud and money laundering. He argues that he is being made a scapegoat for Lebanon’s financial crisis which began in 2019. Both Salameh and his brother Raja are suspected by French authorities of diverting over $300 million in public funds.
Alleged Collusion and Wealth Origins
French and other European investigators suspecting collusion between the brothers believe the majority of Riad Salameh’s wealth comes from the public funds he allegedly diverted. However, this claim is contested by Salameh.
Counterfeit Bank Statements
In response to the accusations, Salameh provided French prosecutors with a 65-page memo from Marwan Kheireddine, chairman of Lebanon’s AM Bank. The document included bank statements illustrating how Salameh’s savings grew from $15 million in 1993 to over $150 million by 2019. However, French court documents indicate these bank statements are counterfeit.
French Prosecutors’ Concerns
French prosecutors expressed concern that Salameh is “unable to justify the different loans and investments that allowed him to increase his wealth by more than 250 million euros (at a minimum) during this period.”
Interrogation of Marwan Kheireddine
Marwan Kheireddine himself was interrogated in France earlier this month on suspicion of involvement in a criminal association and aggravated money laundering. His passport was confiscated, and he was instructed not to leave the country.
Ongoing Investigation
French authorities continue their investigation involving Salameh, Kheireddine, and other Lebanese and European nationals.
Key Takeaways from this Financial Scandal
- Avoid Using False Documents or Records: Using false documents or records to conceal wealth or justify financial activities is illegal and can result in serious legal and reputational consequences.
- Be Transparent About the Source of Wealth: Individuals and organizations should be transparent about the source of their wealth and financial activities. This can help to build trust and credibility with stakeholders and regulators.
- Regularly Review Bank Statements and Other Financial Records: Regularly reviewing bank statements and other financial records can help to identify any irregularities or suspicious activities early on, before they escalate into more serious problems.
As this investigation unfolds, the Lebanese public awaits the upcoming court proceedings and the potential impact on Lebanon’s political and financial landscape.