Lebanon Ex-Central Bank Chief Riad Salameh Arrested For Embezzlement

Vasu Jit Kalia
Vasu Jit Kalia

Lebanon’s former central bank governor, Riad Salameh, was arrested in Beirut on Tuesday over alleged financial crimes linked to a broking company, three judicial sources said, his first arrest after years of accusations at home and abroad.

Salameh, 73, was the bank governor for 30 years, but his final years were marred by charges of financial crimes, including illicit enrichment through public funds, by authorities in Lebanon and several Western countries.

According to the judicial sources, the former central bank chief was accused of accruing more than $110 million via financial crimes involving Optimum Invest, a Lebanese firm that offers income broking services.

The specific charges that led to his arrest were embezzlement, money-laundering, and fraud as part of commissions earned through the central bank’s dealings with Optimum between 2015 and 2018.

Neither Salameh nor his lawyer immediately responded to requests for comment. Salameh has previously denied any accusations of financial crimes.

He will be held for four days as a “precautionary arrest” before the case is transferred to the Beirut public prosecutor, another judicial source said.Tuesday’s charges are separate from previous charges of financial crimes linked to Forry Associates, a company controlled by Salameh’s brother, Raja. The brothers, who deny any wrongdoing, were accused of using Forry to divert $330 million in public funds through commissions.