Home / Crime and Justice / HSBC Swiss Unit Charged in Lebanese Embezzlement Scandal
HSBC Swiss Unit Charged in Lebanese Embezzlement Scandal
5 Jun
Summary
- HSBC's Swiss branch faces preliminary charges for aiding embezzlement.
- The investigation centers on over $300 million moved from Lebanon.
- Former Lebanese central bank governor Riad Salameh denies wrongdoing.
French prosecutors have initiated preliminary charges against HSBC's Swiss unit. The charges stem from allegations that the bank aided former Lebanese central bank governor Riad Salameh in embezzling funds. This development follows investigations into suspected conspiracy, misuse of public money, breach of trust, and bribery.
Investigators allege that Riad Salameh and his brother, Raja Salameh, transferred over $300 million from the Lebanese central bank to an HSBC Switzerland account between 2002 and 2015. Hundreds of millions were then reportedly channeled to Swiss accounts controlled by the brothers. Riad Salameh has denied all allegations, asserting his integrity and legitimate earning of wealth before public office. Raja Salameh has also denied wrongdoing.
Swiss regulator Finma had previously identified significant anti-money laundering control failures. In 2024, Finma ordered a review of high-risk client relationships linked to over $300 million in transactions between Switzerland and Lebanon. Enforcement proceedings against HSBC in connection with Lebanese clients began in 2021. HSBC acknowledged last year that French and Swiss authorities were investigating its alleged role in money laundering related to historical client relationships.
