Lebanon, former Central Bank governor arrested

Riad Salameh, former governor of the Central Bank of Lebanon, was arrested yesterday in Beirut after being questioned in the courthouse, according to what was confirmed by Lebanese state media. The former head of the central bank for four consecutive terms (from 1993 to 2023) “is the subject of several investigations in Lebanon and Europe”, however “the announcement (of his arrest) came like a bolt from the blue in Lebanon”, the newspaper Le Monde highlighted, giving maximum prominence to the news.

Lebanese national news agency NNA reported that Judge Jamal al-Hajjar, who serves as the attorney general, ordered the detention of 73-year-old Salameh after questioning him for more than three hours, during which “several financial matters” were examined. Salameh was being investigated for alleged financial crimes, including illicit enrichment through public funds, an accusation leveled not only by Lebanese authorities but also by those of several other countries, including France. Interpol had issued a “red notice” – a request, addressed to law enforcement agencies around the world, to locate and pre-emptively arrest a person awaiting extradition – although Lebanon does not have such a notice for its own citizens.

Salameh appeared before the Lebanese judiciary for the first time since his term ended in July 2023 without a successor being named. Among the charges brought against him, he is accused of having made illicit profits of more than $110 million through financial crimes linked to the Lebanese company Optimum Invest, which offered brokerage services.

The charges relate to alleged manipulation of financial statements and attempts to hide the country’s heavy economic losses between 2015 and 2018. Despite serious allegations of embezzlement, money laundering and fraud, Salameh has consistently denied any wrongdoing, saying his wealth comes from inherited property and private investments, as well as his past as a banker at Merrill Lynch.

Lebanon’s internal security forces transferred Salameh to a secure prison, where he will remain in custody pending the continuation of the investigation. Acting Justice Minister Henry Khoury said he respected the judiciary’s decision, while interim Prime Minister Najib Mikati assured that the government would not intervene in the case.