Former c.bank chief Riad Salameh’s $40 million legal battle: Lebanon takes action as Justice Ministry steps in

Report by Lara El Hachem, English adaptation by Karine Keuchkerian

After the Financial Public Prosecution filed charges against former Lebanese Central Bank chief Riad Salameh, the Litigation Authority at the Ministry of Justice has now joined the case on behalf of the Lebanese state. 

These charges are based on suspicions of embezzling $40 million from the consultancy account at the Central Bank of Lebanon. 

Investigations reveal that these funds passed through the accounts of lawyers close to the former central bank governor, eventually reaching Salameh himself, and the source of the funds is likely the account of the Optimum Invest firm.
 
However, the key question remains about the timing of these charges.

Informed sources state that the Special Investigation Commission at the Central Bank had sent all related files to the Public Prosecution since September 2023, but the case only progressed once Judge Jamal al-Hajjar took over, studied the case, and made his decision. 

While judicial sources do not rule out that the judiciary's actions might be linked to avoiding Lebanon's placement on the FATF grey list by demonstrating its efforts in combating corruption, banking sources deny any direct connection between the two, although they suggest that this prosecution could positively impact negotiations with the Financial Action Task Force.

Meanwhile, Salameh is still being pursued abroad. Will these foreign prosecutions be affected by his arrest in Lebanon?

Judicial sources confirm that there is no legal provision preventing the accused from being tried in both national and foreign courts, especially if the alleged actions differ.

Thus, simultaneous trials in Lebanon and abroad are possible, though Lebanon could halt judicial cooperation with foreign entities until its own investigations are concluded, as per the United Nations Convention Against Corruption.