The imposition of new sanctions on Lebanon’s former central bank governor, Riad Salame, has escalated the value of frozen assets tied to him and his associates to over $200 million, according to findings by the Organized Crime and Corruption Reporting Project (OCCRP). The frozen assets, including prime London properties and Wall Street apartments, highlight the international crackdown on alleged corruption under Salame’s tenure at Banque du Liban (BdL).
On 10 August, shortly after Salame stepped down from his 30-year role at BdL, the United States, Canada, and the United Kingdom coordinated sanctions against him, citing corruption and financial mismanagement. According to the U.S. Treasury, Salame exploited his position to funnel hundreds of millions of dollars through shell companies, which were then invested in real estate across Europe.
“His corrupt and unlawful actions have contributed to the breakdown of the rule of law in Lebanon,” the U.S. Treasury stated.
Global scope of Frozen assets
The U.K. sanctions targeted properties worth at least £41.56 million (approximately $59.3 million) across the nation, including a luxury Kensington Gardens apartment valued at £3.5 million and 10 apartments in Chelsea linked to Salame’s brother, Raja. Meanwhile, U.S. measures focused on three Manhattan apartments with a combined worth of $5.62 million, purchased by Jersey-based firms reportedly controlled by Raja Salame.
In France, frozen assets include multiple luxury properties in Paris and the Champs Elysées area, collectively valued at millions of euros. A leaked French investigation revealed how Salame transferred ownership of these properties to his children to obscure their origins.
Additionally, sanctions cover five commercial buildings in London, Birmingham, and Bristol owned by Luxembourg-based Fulwood Invest S.a.r.l., controlled by Salame.
Widespread corruption allegations
Salame has denied all allegations and announced plans to challenge the sanctions. Once celebrated for stabilising Lebanon’s economy post-civil war, he now faces accusations of operating a Ponzi scheme that contributed to Lebanon’s financial collapse.
Since 2019, Lebanon’s economic meltdown has plunged over 80% of its population into poverty. Critics argue that while the Lebanese people suffered, Salame and his associates reaped illicit gains.
Ongoing investigations in France, Germany, Switzerland, Luxembourg, and Lebanon allege that Salame embezzled public funds and laundered them internationally. His ability to travel is severely restricted by Interpol “Red Notices” from France and Germany. In Lebanon, Salame faces embezzlement and money laundering charges and is scheduled for a tribunal appearance later this month.
More Read
New audit exposes financial misconduct
A leaked audit report prepared by Alvarez & Marsal revealed $107.7 million in “illegitimate” commission payments made from BdL accounts between 2015 and 2020. The funds were linked to Forry Associates, a British Virgin Islands company owned by Raja Salame. This operation allegedly began in 2002 and funnelled $330 million to shell companies and accounts associated with the Salame family.
The audit uncovered that Salame’s personal accounts at BdL received $95.9 million in unexplained deposits between 2015 and 2020. During the same period, he transferred $75.1 million to bank accounts in jurisdictions including Switzerland, Germany, and the U.S.
Deputy Prime Minister Saadeh Al-Shami described the audit findings as “shocking” and called for judicial action.
Challenges in asset repatriation
While sanctions freeze assets, repatriating them remains complex. Legal frameworks, such as the U.K.’s Unexplained Wealth Orders, may compel Salame to prove the legality of his wealth. However, experts stress that successful recovery depends on the political will of Lebanese authorities.
Helen Taylor of Spotlight on Corruption noted that international reforms and reporting standards could assist Lebanon in tracing stolen funds. Meanwhile, French NGO Sherpa emphasised the determination to pursue justice, though the process may take years.
As global pressure mounts, Salame’s case serves as a stark warning against unchecked corruption, while Lebanon grapples with restoring accountability and addressing the economic fallout of his tenure.
