Salameh has been investigated for aggravated money laundering and has been under intense scrutiny since 2019 [Getty]
Lebanon has filed a lawsuit against the HSBC bank in Switzerland over an embezzlement and corruption case involving Riad Salameh, the former Lebanese central bank governor who siphoned tens of millions of dollars.
The head of state litigation Helene Iskandar said she filed the lawsuit on 14 January, according to The National.
Salameh has previously been investigated for aggravated money laundering, with documents alleging he has siphoned at least $330 million from the central bank through commissions paid into his brother’s company account, registered at HSBC Private Bank Switzerland.
Salameh’s brother’s company, Forry Associates, was formed in 2001 in the Virgin Islands, “on the advice of HSBC Bank in Geneva”, minutes from the hearing given before the Lebanese judiciary stated.
The minutes further added the bank handled the “incorporation procedures” and was responsible for opening the company’s bank account.
Several countries, including France, Germany, Belgium and Luxembourg have launched corruption investigations into Salameh.
Investigations, which started in 2020, show the funds went on to pay for luxury properties in the US and around Europe for Salameh and his relatives.
Lebanon now alleges that HSBC Switzerland did not carry out proper due diligence regarding the huge sums of money, and their origins.
HSBC Private Bank Switzerland has further been accused by the Swiss Financial Market Supervisory Authority of violating money-laundering rules linked to the case.
The National reported that Salameh and his brother have both denied any wrongdoing.
The New Arab reached out to HSCBC Switzerland but did not receive any comment by the time of publication.
Salameh has been the subject of controversy and scrutiny since Lebanon’s economic collapse in 2019, which saw the currency lose much of its value.
He has also been in custody in Lebanon since September in a case involving embezzlement and financial statements.
During his arrest, he reportedly ‘broke down in tears’ and was visibly shaken as he was handcuffed.
Salameh has repeatedly denied wrongdoing and defended his legacy, saying he is a “scapegoat” for Lebanon’s economic collapse.
