Riad Salameh, who was internationally wanted, resigned from the role he had held for 30 years after being charged with corruption in the aftermath of Lebanon’s economic collapse.
Former Central Bank Governor of Lebanon, Riad Salameh in disgrace after being charged with embezzlement, money laundering, and tax evasion. After being charged with corruption, the former longtime Governor has been sanctioned by the United States, the United Kingdom, and Canada.
The sanctions were issued on Thursday, accusing Salameh of contributing to Lebanon’s breakdown of the rule of law through corrupt conduct that profited himself and his associates.
The US Department of the Treasury said, “Salameh abused his position of power, likely in violation of Lebanese law, to enrich himself and his associates by funneling hundreds of millions of dollars through layered shell companies to invest in European real estate.”
The sanctions also apply to Raja Salameh, the ex-governor’s brother, and Marianne Hoayek, his former assistant. Washington and London have sanctioned Anna Kosakova, who has a kid with Riad Salameh, while the United States sanctioned his son Nady Salameh.
The penalties block Riad Salameh’s assets and prevent transactions between him and US people or businesses.
According to Canadian Foreign Minister Melanie Joly, the penalties send a message to the countries or businesses “will not tolerate the acts of significant corruption that have contributed to Lebanon’s economic collapse.”
Salameh has disputed the claims of corruption and stated that he will fight them, saying that some of his assets have already been blocked in prior investigations.
Tainted Legacy
The disgraced former governor of Lebanon’s central bank, known as Banque du Liban resigned on July 31 after holding the position since 1993. Salameh, once hailed as a financial genius, now has a tarnished record as a result of the collapse of Lebanon’s banking system and corruption charges both at home and abroad.
In February, Lebanon charged him with embezzlement, money laundering, and tax evasion.
In May, French and German officials obtained arrest warrants for him, with Interpol red alerts declaring him sought by both countries on money laundering charges.
In a probe into his riches, France, Germany, and Luxembourg seized assets totaling 120 million euros ($135 million) in March of last year.
According to a European diplomatic source, Salameh will be tried in Paris soon.
Salameh has claimed that he has been used as a scapegoat for Lebanon’s devastating economic crisis.
Lebanon’s currency has lost 98 percent of its value against the US dollar due to decades of corruption by government officials. Many individuals hold Salameh and his cronies accountable for mismanaging the country’s economy.