Former Lebanon Central Bank Chief Riad Salameh arrested on financial crime charges.

A High-Profile Arrest

In a significant development from Beirut, authorities arrested Riad Salameh, the former Governor of Lebanon’s Central Bank, on Tuesday. This marks Salameh’s first arrest after years of allegations both within Lebanon and internationally. Salameh, 73, who served at the helm of the central bank for three decades, has faced accusations of financial crimes in recent years, tarnishing his long tenure.

Charges and Allegations

Judicial sources informed Reuters that Salameh is accused of amassing over $110 million through financial crimes associated with the Lebanese brokerage firm Optimum Invest. The specific charges leading to his Tuesday arrest include embezzlement, money laundering, and fraud, particularly relating to commissions earned from the central bank’s dealings with Optimum between 2015 and 2018. Despite attempts to reach him, Salameh, who has previously denied any wrongdoing, and his lawyer did not immediately respond to requests for comment.

Pretrial Detention and Company Response

A judicial source mentioned that Salameh would be held in “precautionary detention” for four days before the case moves to the public prosecutor in Beirut. Meanwhile, Rane Aboud, CEO of Optimum Invest, stated that the company was not summoned to Tuesday’s session and learned of Salameh’s arrest through the media. Aboud directed Reuters to a company statement asserting that a financial audit conducted in late 2023 found no evidence of illegal activities in its transactions with the Lebanese central bank.

Broader Implications

Salameh’s arrest could signal a rare instance of the Lebanese authorities holding a high-profile figure accountable within a system critics argue has long protected the elite. Despite facing charges in Lebanon and arrest warrants in France and Germany, along with a red notice from Interpol, Salameh had not been previously arrested. The case, if it proceeds, may showcase Lebanon’s commitment to addressing financial crimes, a key area of concern for international financial oversight bodies.

Salameh’s Downfall

Once celebrated for his role in stabilizing Lebanon’s financial system post-civil war, Salameh’s reputation has significantly deteriorated. Following his departure from the central bank, the United States, the United Kingdom, and Canada imposed sanctions against him, accusing him of corruption and self-enrichment, charges he also denied.

This arrest comes as Lebanon’s financial system faces severe scrutiny and the potential of being placed on a “grey list” by global financial watchdogs, demanding more rigorous oversight. The arrest might be seen as an effort by Lebanese authorities to demonstrate their commitment to combating financial crimes and improving their international standing.

Legal and Political Non-Interference

The Lebanese Justice Minister, Henry Khoury, indicated he had no details on the case but affirmed the public prosecutor’s action against Salameh. Caretaker Prime Minister Najib Mikati told Al Arabiya Al Hadath that the government would not interfere with the judiciary’s handling of the case, emphasizing the separation of powers in this high-stakes legal matter.

Salameh’s close ties with top Lebanese politicians have previously led to skepticism about the judiciary’s independence. However, this arrest might mark a turning point in Lebanon’s approach to financial accountability and governance, potentially reshaping the country’s financial and political landscape.

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