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The former central bank governor of Lebanon, Riad Salameh, has been hit with sanctions by the US, UK, and Canada. The sanctions come as a result of allegations that Salameh misused his position for personal gain. Salameh stepped down from his role at Banque du Liban 10 days before the sanctions were announced.
In a joint statement, the US Treasury and UK Foreign Office stated that the sanctions were intended to promote a “Lebanon that is governed for the benefit of the Lebanese people and not for the personal wealth and ambition of Lebanon’s elite.” The US Treasury clarified that the sanctions do not apply to the central bank or its assets.
Riad Salameh’s reputation has deteriorated since Lebanon’s financial crisis in 2019, which pushed 75% of the population into poverty. He has faced allegations of corruption and financial mismanagement at Banque du Liban and is widely blamed by the Lebanese public for their economic hardships, including the drastic devaluation of the Lebanese pound.
In addition to Riad Salameh, four of his close associates have also been targeted with sanctions. These individuals, including Salameh’s brother, son, ex-girlfriend, and assistant, face asset freezes and travel bans. The US sanctions further prohibit American citizens and lenders from engaging in transactions with them.
European prosecutors from several countries have been investigating Salameh and his associates for illicit enrichment and money laundering. The investigations allege the embezzlement of $330 million from the central bank, which was then funneled through shell companies to invest in real estate. Several warrant arrests have been issued, including by the EU’s legal agency Eurojust and French financial crimes prosecutors.
Riad and Raja Salameh have denied any wrongdoing, with Riad claiming his wealth comes from his previous job and inheritance. The other individuals targeted with sanctions have not commented on the matter. Riad Salameh failed to appear at a hearing in Beirut, which has faced delays due to alleged political interference in the Lebanese judiciary’s investigation.
Despite some political support, the actions against Riad Salameh demonstrate a commitment to holding individuals accountable and addressing corruption in Lebanon. The US and UK officials emphasize the need for Lebanon’s leaders to combat corruption and implement necessary reforms to restore economic stability.
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