An update on HSBC's involvement in a Swiss probe linked to the former governor of Lebanon’s central bank

An update on HSBC's involvement in a Swiss probe linked to Riad Salameh, the former governor of Lebanon’s central bank, has been reported.

HSBC is the focus of a Swiss investigation into suspected money laundering connected to the alleged embezzlement of hundreds of millions of dollars by the former head of Lebanon’s central bank.

It has been reported on July 30, 2025, that:

• HSBC Holdings Plc’s Swiss private bank said in a statement on Wednesday that Swiss federal prosecutors opened the probe in January into:
• HSBC Private Bank (Suisse) SA;
• An unnamed individual; and
• Four other “unknown persons” about the case.
• Since 2020, Swiss prosecutors have been investigating the case surrounding Riad Salameh, Lebanon’s former central bank governor, who Lebanese prosecutors then charged last year with embezzling public funds, forgery, illicit enrichment and money laundering.
• Salameh was head of Lebanon’s central bank for three decades before stepping down.
• He’s been sanctioned by both the US and the UK, with the US Treasury accusing him of abusing his position of power to enrich himself and his associates.
• Salameh has repeatedly denied allegations against him and has said that his fortune was amassed during his previous career in finance.
• Earlier on Wednesday, the UK bank said that Swiss and French law enforcement agencies were investigating it over its involvement in alleged money laundering.
• The investigations are at an early stage, and authorities are examining potential offences related to what the bank said were “two historical banking relationships,” according to a statement.
• HSBC warned the possible impact on the firm could be significant, though it was “not practicable” to predict what that might be.
• Switzerland’s financial regulator last year announced that it had found that HSBC’s private bank had failed to carry out adequate checks on high-risk accounts owned by politically exposed persons.
• At the time, FINMA said it had found serious violations of the law related to a total of more than $300 million of transactions carried out between 2002 and 2015.
• HSBC was ordered to conduct a review of its anti-money laundering systems and all of its high-risk business relationships and relationships with politically exposed clients.
• The bank was also told that it could not take on any more politically exposed persons as clients until the work was complete.

Here’s a detailed profile of Riad Salameh, the former governor of Lebanon’s central bank, and the legal issues surrounding him:

👤 Who is Riad Salameh?

• Born: 17 July 1950, Antelias, Lebanon.
• Education: Bachelor’s degree in economics from the American University of Beirut.
• Career:
• Worked at Merrill Lynch (1973–1993), rising to Vice President and financial advisor.
• Appointed Governor of Banque du Liban (BDL) in 1993 by then-Prime Minister Rafic Hariri.
• Reappointed for four consecutive terms, serving until 31 July 2023.
• Known for maintaining the stability of the Lebanese pound until the 2019 financial crisis.
• Held roles in international financial bodies like the IMF and Arab Monetary Fund[1].

⚖️ Legal Troubles and Allegations

• Accusations:
• Corruption, money laundering, and running what some have called the largest Ponzi scheme in history.
• Allegedly embezzled hundreds of millions of dollars through complex financial schemes.
• Accused of using companies like Forry Associates (linked to his brother) and Optimum Invest to siphon public funds.
• Arrest and Charges:
• Arrested in Beirut in September 2024 on charges of embezzlement, money laundering, and fraud.
• Investigations span Lebanon, France, Germany, and Switzerland.
• Subject to Interpol Red Notices and sanctions by Canada, the UK, and the US[2].
• Current Status:
• Detained in Lebanon following a judicial hearing.
• His arrest marks a historic moment as he is the first high-ranking Lebanese official jailed for corruption[3].

References

• Riad Salameh - Wikipedia https://en.wikipedia.org/wiki/Riad_Salameh
• Lebanon ex-Central Bank chief Riad Salameh arrested over financial ...Lebanon ex-Central Bank chief Riad Salameh arrested over financial crimes – Middle East Monitor
• Analysis: Lebanon’s ex-Central Bank chief behind bars ... - UPI https://www.upi.com/Top_News/World-News/2024/09/16/lebanon-Riad-Salameh-arrest/3471726503662/
• HSBC Targeted in Swiss Probe Linked to Ex-Lebanon Central Banker https://www.swissinfo.ch/eng/hsbc-targeted-in-swiss-probe-linked-to-ex-lebanon-central-banker/89756571
• HSBC Swiss private bank faces probe over money laundering https://www.privatebankerinternational.com/news/hsbc-swiss-private-bank-probe/
• https://www.swissinfo.ch/eng/hsbc-targeted-in-swiss-probe-linked-to-ex-lebanon-central-banker/89756571