HSBC Private Bank Suisse charged in France with money laundering in Salamé case
The Geneva bank was placed under formal investigation on 6 June for allegedly helping the former governor of the Central Bank of Lebanon embezzle 330 million dollars. A guarantee of 80 million euros was imposed.
HSBC Private Bank Suisse charged in France with money laundering in Riad Salamé case
French courts placed HSBC Private Bank Suisse under formal investigation on 6 June in connection with the alleged illicit enrichment case of Riad Salamé, the former governor of the Central Bank of Lebanon, according to Le Temps, citing the newspaper Le Monde.
The Geneva-based establishment is suspected of facilitating the embezzlement and concealment of 330 million dollars from the Lebanese central bank between 2002 and 2015. The Swiss subsidiary of the British banking group faces prosecution for money laundering as part of an organised criminal group and criminal association. It was required to post a guarantee of 80 million euros as security for potential damages.
Offshore mechanism at the heart of the case
The embezzled funds allegedly came from commissions paid by Lebanese private banks when acquiring financial products issued by the Central Bank of Lebanon. The central institution then transferred these sums to an offshore company presented as an independent broker, which held a dollar account with HSBC Private Bank Suisse.
The crux of the case lies in a concealed conflict of interest: at the time of signing the contract between the Central Bank of Lebanon and this offshore company, Riad Salamé allegedly failed to declare that the entity belonged to his brother, Raja Salamé.
Far-reaching case with European dimension
The Riad Salamé case, being investigated by several European jurisdictions in parallel, concerns allegations of large-scale illicit enrichment to the detriment of Lebanese public finances. The former governor, who led the Central Bank of Lebanon for nearly three decades before stepping down in 2023, is the subject of judicial proceedings in several countries.
The placing of the Geneva bank under formal investigation constitutes a significant step in the French phase of this inquiry, which now also targets a major financial institution for its alleged role as a facilitator.
Source: Le Temps