Lebanon Central Bank Governor Denies Money Laundering and Embezzlement Allegations

Lebanon central bank Governor Riad Salameh has made his first court appearance facing international charges.

Five European countries are investigating the Banque du Liban governor and his brother, Raja Salameh, regarding allegations of money laundering and embezzlement of public funds involving hundreds of millions of dollars, the Financial Times (FT) reported Thursday (March 16).

Riad Salameh — who has been the head of the central bank for 30 years — was questioned for five hours in a Beirut court, with a European team questioning him through a Lebanese judge, as required by the country’s law, according to the report.

Salameh denied the allegations and said they are aimed at making him a scapegoat for the 2019 implosion of Lebanon’s economy, the report said.

He was charged with illicit enrichment and money laundering in March 2022 and was arrested and taken into custody at that time after failing to appear for a court appearance.

Raja Salameh and Ukranian national Anna Kosakova, who owns a company with Raja Salameh, were charged at that time with facilitating money laundering.

Riad and Raja Salameh are also facing a new, separate investigation in Lebanon. Beirut’s public prosecutor is investigating them and an associate, Marianne Hoayek, due to allegations of corruption, and has moved to freeze their assets, according to the FT report.

All three deny the new allegations, the report said.

Beyond that, Lebanon’s caretaker prime minister, Najib Mikati, said he does not favor extending Salameh’s term as central bank governor when his sixth term ends in July, per the report.

This report comes amid news of money laundering allegations in several countries.

In January, Bulgarian police raided cryptocurrency lender Nexo in a money laundering and tax probe. The raid was part of a flurry of law enforcement activity involving crypto companies.

In December 2022, Chinese police broke up a money-laundering group that used cryptocurrency to launder about $1.7 billion. The group laundered money for both domestic and foreign criminals that got the funds from illegal pyramid schemes, fraud and gambling.

In November 2022, the U.S. Department of Justice charged 21 people with using cryptocurrency to launder money stolen through fraud schemes. The individuals were said to be involved with transnational money laundering networks that helped foreign criminal gangs move proceeds stolen from U.S. victims.