Paris issued an arrest warrant for the head of Lebanon’s central bank on Tuesday after he failed to appear for questioning by French investigators on corruption and money-laundering charges.
French prosecutors and an investigating judge have been investigating Riad Salameh, his brother and a close associate on charges of illegal enrichment and laundering hundreds of millions of dollars in public funds for personal gain.
The 30-year Lebanese banking veteran has been hailed as a financial wizard who has stabilized Lebanon’s shaky economy since its financial meltdown in 2019 pushed three-quarters of its population into poverty. Financial situation.
Salameh, 72, is under investigation in Lebanon and at least five European countries for alleged financial crimes, but still enjoys the support of many of Lebanon’s powerful political leaders.
Salameh and his brother Raja Salameh have strenuously denied the allegations against them. Salameh has repeatedly insisted that his personal wealth comes from his previous job as an investment banker, as well as a family legacy.
A person with knowledge of the French investigation said the arrest warrant issued by France would be published abroad. But it is unlikely to act in Lebanon.
Salameh’s French lawyer, Pierre-Olivier Sur, said the subpoena appears “invalid” because it was issued less than 10 days before the scheduled hearing.
Salameh said in a statement that the arrest warrant “contradicted the law” and that he would appeal the decision. He also accused French investigative judge Ode Bracy of “justice based on double standards”.
At a preliminary hearing scheduled for Tuesday, French investigators will question Salamé to determine whether there is enough evidence to justify preliminary charges against him. They were unable to make such a decision in his absence, but they could, if appropriate, make preliminary charges at the conclusion of the investigation, even in absentia, the people said.
The arrest warrant could complicate Salameh’s tenure as governor. His current term ends in July, and he has said publicly that he plans to step down, although there is no clear succession plan. Some political leaders are privately discussing the possibility of extending Salameh’s term amid widespread debate over whether the limited caretaker government can name his successor.
Last month, a judge in Lebanon lifted a travel ban she had imposed on Salameh while she investigated him. But it is widely believed that he will not travel to France because of fears he will be detained there.
European investigators, including France, have visited Lebanon several times this year to question Salameh and dozens of others on state corruption charges.
The European investigation grew out of a Swiss investigation launched more than two years ago. Swiss authorities suspect that Salameh and his brother Raja embezzled money from the central bank between 2002 and 2015 through a deal with a little-known offshore company, according to a letter from the Swiss attorney general’s office requesting legal assistance from the Lebanese authorities. More than $300 million. November 2020.
Swiss investigators say the offshore company, Forry Associates, was controlled by Raja and more than $300 million was funneled from Forry to a Swiss bank account controlled by the brothers. Both Riad and Raja Salameh have denied wrongdoing.
In March 2022, Eurojust froze over $130 million in assets related to the investigation, citing ongoing investigations in Luxembourg, France and Germany. Salameh has appealed the decision.
Another person familiar with Salameh’s case said the lawyers had petitioned the Lebanese courts to suspend the European investigation until Lebanon’s own investigation was completed, saying the parallel European investigation undermined Lebanon’s judicial sovereignty. Beirut prosecutors filed initial charges in February against Salameh, his brother and the head of Salameh’s executive office at the central bank.
Last week, a high-profile Lebanese judge who had been leading the investigation into Salameh was sacked.