A European delegation to Lebanon to investigate the wealth of the central bank governor

A delegation of European investigators will visit Lebanon next month to discuss the court files relating to central bank governor Riad Salameh, who is being prosecuted for money laundering and financial crimes in European countries.

According to information, the Lebanese authorities have been informed by France, Germany and Luxembourg through an official letter that a judicial delegation from these countries will visit Beirut between January 9 and 20.

The financial prosecutor, Judge Ali Ibrahim, contented himself with telling Al-Arabiya.net: “We, as the financial prosecutor, have not been officially informed of the arrival of the European investigators in Lebanon.”

He refused to comment on the visit by European investigators until he learned the nature of their mission to Lebanon.

In this context, informed sources told Al-Arabiya.net that the main objective of the European delegation’s visit is to investigate the wealth of the governor of the Banque du Liban and the case of his brother Raja Salameh’s company “Fawry”, reason of suspicion that the Salameh brothers were involved in embezzlement, money laundering and illegal enrichment.

Investigations with financial officials

According to the sources, the European delegation’s investigations will include meetings with the governor’s deputies and senior officials of the central bank, as well as with some directors of some commercial banks.

So far no official position has been released in Lebanon regarding the visit, either confirming or denying that it took place.

The Banque du Liban declined to answer Al Arabiya.net’s question about whether Governor Riad Salameh would meet the European delegation if the Lebanese authorities allow him to come to Lebanon.

The former head of the Banking Control Commission, Samir Hammoud, told Al-Arabiya.net that “the European delegation is currently visiting Lebanon with the aim of getting acquainted with the work of the banking and monetary system in the light of the current crisis and Lebanon’s transformation into a cash economy, which facilitates money laundering operations.”

The European delegation did not ask permission

For his part, Dr Ali Zbib, a lawyer specializing in international economic affairs, told Al-Arabiya.net that a European judicial delegation made up of prosecutors and financial judges from Germany, France and Luxembourg “informed” the Lebanese authorities – and did not ask for their permission – who will visit Lebanon next month. As part of the investigations he is conducting into the Banque du Liban governor’s wealth and his financial cases that have been opened against him before his courts.

He underlined: “The European delegation will investigate the governor of the Banque du Liban, his deputies and the directors of the Central Bank and other commercial banks, without asking the Lebanese judiciary for ‘help’, and this is surprising”.

The inquiry was attended by Lebanese judges

Attorney Zbeeb considered: “The Lebanese authorities have the option to ‘refuse’ the European delegation to come, but to ask them, in return, to present a judicial power of attorney to question the governor of the Banque du Liban, in the presence of Lebanese judges “.

The visit raised questions about the concept of “sovereignty” and whether a foreign country has the right to conduct investigations in a sovereign country, noting that the anti-corruption agreement signed by Lebanon obliges it to comply with requests from foreign judicial authorities, but on the provided that this complies with Lebanese law.

In this context, the head of the Justicia Foundation for Human Rights, Dr. Paul Morcos, explained to Al-Arabiya.net: “No outside party is allowed to nullify the absolute judicial sovereignty of the Lebanese courts. In case a foreign country wishing to conduct investigations within this sovereignty, must request it by virtue of a judicial delegation.

He said: “For example, the precedent of businessman Carlos Ghosn, who was heard by the French judiciary through a Lebanese judge who received questions from the French side and then referred them to him.

Morcos considered, “There are many problems before the European Judicial Delegation, including the rules that must be taken into account by the Lebanese Public Prosecutor, including issues related to the place of the interrogation, who will participate in it, what judicial measures will follow the interrogation and whether arrest is possible whether the suspect should be arrested and where.” will he be arrested?
International wholesale criticism and prosecutions: Since the onset of the economic collapse in 2019 and the loss of the Lebanese pound by more than 95% of its value, the governor of the Banque du Liban has come under sharp criticism of his monetary policies and financial engineering, since they have accumulated debts.

Two years ago, Switzerland investigated the misappropriation of funds “damaging the Banque du Liban”, suspected of having behind Salama and his brother, and estimated at more than 300 million dollars.

France’s finance judiciary has also been investigating Salama’s wealth since July 2021 and earlier this month brought charges against a Ukrainian woman close to him, including money laundering and tax fraud.

In March 2022, the European Cooperation Unit froze $190 million of Lebanese assets and its investigations targeted Salameh and four people close to him on charges of misappropriating public funds.

Months ago, France, Germany and Luxembourg froze 120 million euros of Lebanese assets as part of security investigations into money laundering and embezzlement cases in Lebanon.

Despite complaints, summonses, investigations and a travel ban issued against him in Lebanon, Salameh is still in the position he has held since 1993. His term is expected to expire in May 2023.