Lebanon launches new proceedings against former central bank governor Riad Salameh

Lebanon launches new proceedings against former central bank governor Riad Salameh

Prosecutors launch fresh proceedings against Riad Salameh and former Bank Audi head Samir Hanna as the country’s central bank pursues legal action to recover billions lost in the 2019 financial crash.

A Lebanese judge has issued new charges against former central bank governor Riad Salame and a former commercial banker over allegations of financial crimes, including embezzlement, money laundering, bribery, and illicit enrichment, according to Lebanon’s National News Agency.

On Monday, Judge Raja Hamouche filed proceedings against 76-year-old Salame and Samir Hanna, 88, the former head of Bank Audi, one of Lebanon’s largest banks. The allegations include the creation of shell companies, misappropriating funds belonging to the Central Bank, and the fraudulent use of those funds to purchase shares and bonds in commercial banks. He also charged them with illicit enrichment, money laundering, and bribery.

The Public Prosecutor of Appeal requested an arrest warrant against Salame. Media have reported that he is currently under medical supervision at a hospital in Beirut. He has repeatedly denied all charges against him. His lawyer has not responded to OCCRP’s request for comment.

Hanna, 88, has reportedly already paid a $1 million bail and is not in custody. He could not be reached for comment.

The development marks the second indictment against Salame in Lebanon this year and the third in total.

Lebanese prosecutors took their first formal legal action against Riad Salame in February 2023, charging him with money laundering and embezzlement after years of international scrutiny. Months later, in July 2023, Salame stepped down as governor of Banque du Liban, ending a three-decade tenure at the central bank.

In September 2024, Lebanese authorities arrested Salame in Beirut over his alleged role in a $44.8 million embezzlement scheme involving central bank commissions. He was released on bail in 2025 and placed under a strict travel ban as court proceedings continue.

In January 2026, prosecutors indicted him alongside two legal advisers on charges of embezzlement, forgery, and illicit enrichment for their roles in the embezzlement of $44 million.

European authorities allege that Salame siphoned more than $300 million from the central bank using a front company owned by his brother, which charged exorbitant commissions on commercial bank transactions.

Investigations across Switzerland, France, Germany, and Luxembourg also allege that hundreds of millions of dollars in stolen public funds were funneled into luxury real estate and bank accounts across Europe. Salame has denied those accusations too.

Concurrent with the latest judicial proceedings, Lebanon’s central bank launched legal action in July against additional targets alleged to have played a role in the country’s 2019 financial meltdown. The action followed a complaint initiated by current central bank governor Karim Soueid in January targeting Salame and Hanna, who reportedly stepped down from Bank Audi’s board that same month.

The financial authority is also suing Lebanon’s BankMed, alongside several executives and a major investor, according to local media. The claim was confirmed to OCCRP’s Lebanese partner, Daraj, by a person familiar with the process. BankMed did not respond to a request for comment.

Under the new leadership Banque du Liban is attempting to recoup funds lost during the 2019 economic collapse, which resulted from a systemic banking failure. 

Lebanon had pegged its currency to the U.S. dollar, and to maintain the fixed exchange rate and fund government spending, the central bank lured commercial banks into depositing customer dollars at exceptionally high interest rates. When new dollar inflows dried up, the system collapsed, wiping out the life savings of millions of people. The World Bank ranked the collapse as one of the world’s worst economic crises since the mid-19th century.

Badih Moukarzel, the central bank’s lead counsel in the cases, told Daraj that the bank is determined to pursue the matters, calling them key to restoring confidence in the financial system.

“Those who committed financial crimes have to be investigated, and if they are found guilty, they must be tried. I don’t see how we can rebuild trust without doing this,” Moukarzel said. He described the financial collapse as a shared responsibility between the state, the central bank, and commercial banks, categorically rejecting out-of-court settlements. “The banks have to pay back. Money has to be returned; we are talking billions of dollars”.