Arrest Warrant Issued for Governor of Lebanon’s Central Bank in Money Laundering Investigation: Here’s What You Need to Know

Germany verbally informed Lebanon of the issuance of an arrest warrant against the Governor of the Banque du Liban (Central Bank), Riad Salameh, who is under investigation on charges of money laundering and embezzlement in his country and abroad, but he denies any wrongdoing.

The move comes one week after France issued an arrest warrant for 72-year-old Salama, and just days after the International Police Organization (Interpol) issued a red notice to include him on the wanted list.

Here is a review of what you need to know about the cases, according to Reuters.

The investigations began with a Swiss audit regarding whether Salameh and his brother Raja embezzled more than $300 million from the Banque du Liban between 2002 and 2015.

Since then, European countries, including France, Germany, Luxembourg and Liechtenstein, have launched their own investigations into whether tens of millions of dollars of funds suspected of embezzlement from the Banque du Liban have been laundered in Europe.

In March 2022, the European Union’s Criminal Justice Cooperation Agency announced the freezing of some 120 million euros ($130 million) of Lebanese assets in France, Germany, Luxembourg, Monaco and Belgium in connection with a case in which Munich prosecutors said Salameh is a suspect.

European investigators went to Lebanon 3 times: the first in January to question witnesses and obtain additional evidence. And the second in March to interrogate Salameh. And the third, in May, to interrogate his brother Raja and his assistant, Marianne Howayek.

France issued an arrest warrant on May 16 after Salameh missed a hearing in Paris. He said he would appeal the warrant. Salameh’s Red Notice was issued by Interpol the same week.

France also summoned Raja and Marianne Howayek for two hearings, on May 31 and June 13, respectively.

The Lebanese investigation faltered

Lebanese authorities said they opened their own investigation after receiving a Swiss request for judicial cooperation.

Critics question whether the Lebanese judiciary, in which appointments depend to a large extent on political support, will seriously investigate accusations related to a figure of similar stature to Salameh, given the political support he enjoys from senior officials.

The judiciary does not deny the existence of difficulties. The highest judge in Lebanon said in November 2022 in a public comment that political interference in judicial work has led to a chaotic situation that requires a “revolution in approaches” to solve it.

According to reports, Jean Tannous, the judge appointed to lead the preliminary investigation, faced obstacles, including the intervention of caretaker Prime Minister Najib Mikati to prevent him from accessing data from banks. Mikati denied those reports.

Reuters reported that the discriminatory public prosecutor, Ghassan Oweidat, prevented Tannous from attending a meeting in Paris last year with European prosecutors investigating Salama.

In June 2022, Oweidat ordered a prosecutor to formally charge Salama, but the plaintiff refused and sought to recuse himself from the case before legal challenges from the governor prevented him.

In February, Salama, his brother Raja, and his assistant Marianne Howayek were accused of money laundering, embezzlement, and illegal enrichment in that case.

A separate investigation, conducted by the Public Prosecutor in Mount Lebanon, Judge Ghada Aoun, led to Salameh being charged in March 2022 with illicit enrichment in a case related to the purchase and rental of apartments in Paris, some of which were by the Banque du Liban.

Salameh denies the allegations and says the allegation is politically motivated.

Salameh was a cornerstone of the financial system that served the special interests of the main factions in Lebanon after the 1975-1990 civil war, and many observers say that these factions fear that his fall will have repercussions for them, according to Reuters.

Salame’s last six-year term ends in July. He refuses to step down early unless he is sentenced.

It is expected that the political crisis, which has left Lebanon without a president and a government with full powers, will complicate any attempt to replace him.