Rhino: Three judicial sources in Lebanon told Reuters that former Central Bank of Lebanon governor Riad Salameh was arrested on Tuesday in Beirut on charges of financial crimes linked to a brokerage firm, his first arrest after years of accusations.
Salameh, 73, served as Lebanon’s central bank governor for 30 years but his final months were marred by accusations of financial crimes, including illicit enrichment through public funds, from authorities in Lebanon and several other countries.
A judicial source told Reuters that authorities arrested the former BdL governor on charges of money laundering, fraud and embezzlement linked to Optimum Invest between 2015 and 2018, a Lebanese company that provides income-related brokerage services.
The charges brought against him on Tuesday differ from previous financial offences he was charged with related to Fawry Associates, a company controlled by Salameh’s brother, Raja. The brothers were accused of using Fawry to divert $330 million in public funds through commissions.
Despite facing charges in Lebanon, arrest warrants in France and Germany and a red alert from Interpol, Salameh has never been arrested.
Another judicial source said he would be held for four days in ‘precautionary detention’ before the case is transferred to Beirut’s public prosecutor.
After leading the central bank following a devastating 15-year civil war, Salameh built a reputation as a competent official in the financial system.
His fall reflects the fall of Lebanon’s financial system, which collapsed over the course of five years in the midst of a severe economic crisis.