Lebanon’s Central Bank Governor Faces Legal Action Over Withheld Information in $116 Million Probe
In a dramatic turn of events, Lebanon’s acting Central Bank Governor, Wassim Mansouri, has been sued by Public Prosecutor of Cassation Judge Ghada Aoun for allegedly withholding critical information in an ongoing investigation into the transfer of $116 million to six banks. The case, which centers on the controversial Riad Salama file, has sent shockwaves through Lebanon’s financial and judicial systems.
According to judicial sources speaking to Lebanon Debate, Judge Aoun initiated the investigation based on Alvarez’s report, which sought to uncover the final beneficiary of the $116 million transfer. Despite repeated requests for information,Mansouri reportedly failed to cooperate,even as three of the six banks involved confirmed that the funds were routed through lawyer michel Tueni and Marwan Issa Al-Khoury before landing in Riad Salama’s account.
Mansouri’s refusal to provide the requested information has raised eyebrows. Judicial sources revealed that he cited a circular from the Cassation Public Prosecutor as justification for his silence. Though, this reasoning has been called into question, as the Cassation Public Prosecutor reportedly holds no authority over the Central bank Governor.
Judge Aoun has charged Mansouri under Article 8,paragraph “B” of the Banking Secrecy Lifting Law,enacted on June 30,2023,alongside Article 7. The charges stem from his alleged obstruction of the investigation, which has now been referred to the First Investigating Judge in Mount Lebanon.
Key Details of the Case
Table of Contents
| Aspect | Details |
|—————————|—————————————————————————–|
| Amount in Question | $116 million |
| Key Figures | Wassim Mansouri (Acting Central Bank Governor), Riad Salama, Michel Tueni, Marwan Issa Al-Khoury |
| Legal Basis | Article 8, Paragraph “B” of the banking Secrecy Lifting law (6/30/2023) and Article 7 |
| Judicial Action | Case referred to the First Investigating Judge in Mount Lebanon |
This case underscores the growing scrutiny of Lebanon’s financial institutions, which have been plagued by allegations of corruption and mismanagement. The investigation into the $116 million transfer is part of a broader effort to hold accountable those involved in financial misconduct, especially in the wake of Lebanon’s ongoing economic crisis.
As the legal proceedings unfold,questions remain about the extent of Mansouri’s involvement and the broader implications for Lebanon’s banking sector. The case also highlights the challenges faced by judicial authorities in navigating the complex web of banking secrecy laws and institutional resistance.
For more on Lebanon’s financial investigations, explore related developments in Lebanon’s former central banker detained on corruption allegations and Swiss regulator investigates 12 banks in Lebanese central banker corruption case.
Stay tuned as this story develops, and share your thoughts on the implications of this case for Lebanon’s financial future.
In a high-stakes legal battle, Lebanon’s acting Central Bank governor, Wassim Mansouri, faces charges for allegedly withholding critical information in a $116 million corruption examination. The case, involving complex banking secrecy laws and institutional resistance, has far-reaching implications for Lebanon’s financial future. We sat down with Dr. Karim Al-Hassan, a renowned expert on financial corruption and banking regulations in the Middle East, to unpack the details and explore the broader consequences of this unfolding scandal.
The Legal Grounds for the Case
senior Editor: Dr. Al-Hassan, thank you for joining us. To start, could you explain the legal basis for the charges against Wassim Mansouri?
Dr. Karim Al-Hassan: Certainly. The charges stem from Article 8, Paragraph “B” of Lebanon’s Banking Secrecy Lifting Law, which was enacted on June 30, 2023, alongside Article 7. These laws were introduced to enhance openness in financial investigations, notably in cases involving corruption or money laundering. Mansouri is accused of obstructing the investigation by failing to provide requested information about the $116 million transfer, which allegedly flowed through intermediaries to Riad Salama’s account.
The Role of Banking Secrecy Laws
Senior editor: Banking secrecy laws have long been a contentious issue in lebanon.How do they complicate cases like this one?
Dr. Karim Al-Hassan: Banking secrecy laws were originally designed to protect individual privacy and encourage foreign investment. Though, they have increasingly been used as a shield to obscure illicit financial activities. In this case, Mansouri reportedly cited a circular from the Cassation Public Prosecutor to justify his silence, but critics argue that the circular does not apply to the Central bank Governor. This highlights the challenges judicial authorities face in navigating a legal framework that often prioritizes confidentiality over accountability.
The Broader Implications for Lebanon
Senior Editor: Beyond the legal aspects,what does this case mean for Lebanon’s financial system and economy?
Dr. Karim Al-Hassan: This case is a litmus test for Lebanon’s commitment to reforming its financial sector. The country’s economy is in shambles, with widespread corruption and mismanagement exacerbating the crisis. If the investigation leads to accountability,it could restore some trust in the financial system. Conversely, if it’s perceived as another instance of impunity, it could further erode confidence and deter much-needed foreign investment. The outcome will also set a precedent for how Lebanon handles future financial misconduct cases.
International Reactions and Collaborations
Senior Editor: How are international actors, such as Swiss regulators, involved in this case, and what does thier involvement signify?
dr. Karim Al-Hassan: The Swiss regulator’s investigation into 12 banks linked to the Lebanese central banker corruption case is significant. it underscores the global nature of financial corruption and the growing international pressure on Lebanon to clean up its act. Collaboration with foreign regulators can provide access to critical information that might be inaccessible domestically due to banking secrecy laws. However, it also highlights the extent to which Lebanon’s financial scandals have crossed borders, further damaging its international reputation.
What’s Next for the Investigation?
Senior Editor: what can we expect as this investigation unfolds?
Dr. Karim Al-Hassan: the case has been referred to the First Investigating Judge in Mount Lebanon, who will determine the next steps.Legal experts will scrutinize the evidence, particularly the role of intermediaries like Michel Tueni and Marwan Issa Al-Khoury. Additionally, there may be further revelations as Swiss regulators and other international bodies continue their investigations. What’s clear is that this case will be closely watched, as it has the potential to reshape Lebanon’s financial and judicial landscape.
