Arrest of Former Lebanese Central Bank Chief Riad Salameh

BEIRUT (Reuters) – Former Lebanese central bank chief Riad Salameh was arrested on Tuesday over alleged financial crimes and will remain in detention at least until a hearing, likely next week, as sources informed Reuters on Wednesday.

After the hearing, the presiding judge will determine if Salameh should remain in detention. No decision has yet been made regarding his case. Sources indicate the judge is expected to set the hearing for early next week.

As of now, Reuters has not been able to contact Salameh’s lawyer.

At 73, Salameh served as the bank governor for 30 years, but his later years were overshadowed by the collapse of Lebanon’s financial system and allegations of financial crimes, including illicit enrichment with public funds from both Lebanese and Western authorities.

According to the state-owned National News Agency, prosecutor Ali Ibrahim charged Salameh with “embezzlement, theft of public funds, forgery, and illicit enrichment” before referring the case to investigating judge Bilal Halawi, who will set the hearing date.

The specific charges have not been publicly released.

On Tuesday, two judicial sources revealed that Salameh is accused of generating over $110 million from financial crimes tied to Optimum Invest, a Lebanese firm providing income brokerage services.

Optimum Invest stated they are “fully assisting the judicial authorities” and have provided needed information and documents, asserting compliance with applicable laws and regulations in their dealings with the Lebanese central bank.

As of Tuesday, neither Salameh nor his lawyer commented on the situation. Salameh has consistently denied allegations of financial crimes.

These latest charges are distinct from previous accusations associated with Forry Associates, a company managed by Salameh’s brother, Raja. Both brothers deny any wrongdoing and face accusations of misappropriating $330 million in public funds through commissions.