US, UK, and Canada Sanction Former BDL Governor Riad Salameh and Associates for International Corruption Scheme

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced on Thursday the designation of former governor of Lebanon's central bank, Riad Salameh, and four close associates. The action was taken in coordination with the United Kingdom and Canada.

The sanctioned individuals were involved in a corruption scheme that funneled hundreds of millions of dollars through shell companies to invest in European real estate. OFAC's statement identified the scheme's goal as "to enrich himself and his associates" while contributing "to Lebanon’s endemic corruption."

According to the official statement, “By using his position to enrich himself, his family, and his associates in apparent contravention of Lebanese law, Salameh contributed to Lebanon’s endemic corruption." Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson further explained, “We are joining the United Kingdom and Canada in imposing sanctions on the former governor because he used his position to place his personal financial interests and ambitions above those of the people he served, even as the economic crisis in Lebanon worsened.”

The scheme involved the use of layered shell companies, bank accounts in Europe and the Caribbean, and substantial investment in European real estate. Alongside Riad Salameh, the sanctions target his brother Raja Salameh, son Nady Salameh, primary assistant Marianne Hoayek, and former partner Anna Kosakova.

The statement details how Riad Salameh "used his office to engage in a variety of unlawful self-enrichment schemes," with assistance from those close to him, diverting funds to buy commercial real estate and luxury properties in various European countries.

Salameh's illicit actions were described as likely violations of Lebanese law and were marked by conflicts of interest. The statement emphasizes that the sanctions “do not extend to the Banque du Liban (BdL) or the BdL’s U.S. correspondent bank relationships."

Thursday’s coordinated sanctions with the United Kingdom and Canada reflect shared concerns regarding corruption in Lebanon. The statement underscored a shared vision "of a Lebanon that is governed for the benefit of the Lebanese people and not for the personal wealth and ambition of Lebanon's elite."

These international efforts are complemented by investigations undertaken by Lebanese and European law enforcement.