The U.S. Department of the Treasury's Office of Foreign Assets Control, along with the United Kingdom and Canada, is designating a former Lebanon central bank governor and associates for corrupt activities in Europe. Riad Salameh reportedly illicitly funneled millions through shell companies to invest in European real estate, according to an Aug. 10 news release.
"By using his position to enrich himself, his family and his associates in apparent contravention of Lebanese law, Salameh contributed to Lebanon’s endemic corruption and perpetuated the perception that elites in Lebanon need not abide by the same rules that apply to all Lebanese people," Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said in the release.
Salameh reportedly partnered with close family members and friends in a variety of unlawful self-enrichment schemes, the release said. The funds were often transferred to a number of property management companies in France, Germany, Belgium and Luxembourg registered in the names of with his son or his former partner.
In addition to Salameh, his son, Nady Salameh; brother, Raja Salameh; assistant Marianne Hoayek; and former partner, Anna Kosakova, are being designated for having "materially assisted, sponsored or provided financial, material or technological support for, or goods or services to or in support of, Salameh.
Salameh's abuse of power enriched himself and associates, violating Lebanese law, perpetuating corruption and undermining the nation's democratic processes, the release reported. Collaborating with the UK and Canada, the U.S. applied sanctions, blocking his assets and dealings on U.S. soil.
The sanctions aim to promote positive change. OFAC's authority extends to the Specially Designated Nationals and Blocked Persons List, emphasizing both accountability and potential for removal, the release said. The focus is to reshape behavior and benefit Lebanese citizens.
“We are joining the United Kingdom and Canada in imposing sanctions on the former governor because he used his position to place his personal financial interests and ambitions above those of the people he served, even as the economic crisis in Lebanon worsened,” Nelson added, according to the release.
