HSBC placed under formal investigation over Lebanese central bank scandal

French prosecutors have brought preliminary charges against HSBC’s Swiss division over allegations it helped former Lebanese central bank governor Riad Salameh embezzle funds.

Europe’s largest lender is being probed in relation to allegations of conspiracy to commit offences including misappropriation of public funds, breach of trust and bribery of a public official, the Paris financial prosecutor’s office said.

In France, filing preliminary charges means that prosecutors believe there is enough evidence to deepen the inquiry with an investigating magistrate. The judge will then later decide whether to take the matter to trial or to dismiss the charges.

HSBC disclosed last year that it was under investigation by French and Swiss authorities over its alleged involvement in money laundering tied to “two historical bank relationships”. It warned that the impact of the investigations could be significant.

Its private bank terminated relationships with more than 1,000 wealthy Middle Eastern clients shortly after, from countries including Saudi Arabia and Lebanon.

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