Lebanon has formally charged its former central bank governor, Riad Salameh, with embezzling $42 million, as reported by three judicial officials. The Financial Public Prosecution took this step a day after Salameh’s detention by Lebanon’s chief public prosecutor for questioning regarding various alleged financial offenses. The case has now been passed on to an investigating judge according to officials who preferred to remain anonymous. Salameh had concluded his 30-year tenure as governor of the central bank about a year earlier under a cloud of suspicion, as he faced investigations by several European nations for financial misconduct. Many Lebanese citizens attribute the country’s severe financial crisis since 2019 to him.

Initially hailed for his role in leading Lebanon’s economic recovery post a 15-year civil war when appointed in 1993, Salameh has consistently refuted allegations of corruption, embezzlement, and unjust enrichment. He has maintained his wealth stems from inherited assets, investments, and his previous employment as an investment banker at Merrill Lynch. During an extended interrogation on Monday, Salameh was questioned about alleged manipulation of financial statements to hide Lebanon’s deteriorating financial situation. Per two other officials, Salameh is believed to have engaged the services of a company called Optimum to aid in siphoning funds from the central bank via various accounts, ultimately flowing into his personal account.

The central bank’s financial intelligence unit has provided bank records and financial paperwork to the public prosecution, as stated by the officials who chose to remain unidentified. The central bank itself declined to comment on the matter. Salameh is facing multiple legal challenges, both domestically and internationally. Apart from Lebanon’s charges, he is under investigation by France, Germany, and Luxembourg for alleged money laundering and illicit enrichment totaling $330 million. Salameh has criticized the European probes, labeling them as part of a concerted effort to tarnish his image.

Furthermore, the United States, the United Kingdom, and Canada have imposed sanctions on Salameh and his close associates, with France issuing an international warrant for his arrest, despite Lebanon’s policy of not extraditing its citizens. Lebanon has yet to appoint a new central bank governor, with Wassim Mansouri, the vice governor, serving as the acting head. The country has been without a president for nearly two years, operating under a transitional government with restricted powers.