Lebanon’s central bank moves to reclaim misused funds, governor says

Karim Souaid, governor of Lebanon’s central bank, said that legal and judicial measures are being taken against anyone found to have embezzled or misused the bank’s funds, which has contributed to depleting its reserves. The measures also target those who violated the central bank’s directives.

In a press conference on Thursday, Souaid revealed that the central bank has filed a complaint with the judiciary against a former official and another individual who allegedly seized funds through four shell companies, resulting in illicit enrichment. Evidence indicates that both were aware of the consequences of their actions.

He added that the central bank has taken legal action against the company “Forry Associates,” which collected funds from every transaction between banks and the central bank, despite the money legally belonging to the latter.

Preparations are also underway to take legal measures against additional parties, including a company whose name is being withheld for now. This entity reportedly benefited from an open account at the central bank under the guise of a consultancy account and transferred large sums through it.

The central bank has initiated procedures abroad and is coordinating investigations, particularly regarding ongoing cases with the Swiss judiciary.

Souaid emphasized that the central bank has sought legal advice from specialized experts to protect its rights and will not hesitate to take all necessary official actions to recover its funds through administrative and judicial channels.

He also said that the central bank is working with international investigators and law firms to recover funds abroad that were misappropriated by companies, officials, and individuals who conspired to undermine its assets.