US, UK and Canada Sanction Lebanese Former Central Bank Governor

Riyad Salama
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The US, UK and Canada have imposed sanctions on Riyad Salama, the former governor of Lebanon's central bank, on corruption charges.

These countries announced the sanctions on Thursday, accusing Salama of playing a role in undermining the rule of law in Lebanon by enriching himself and his associates through corrupt practices.

"Salamah abused his power, possibly in violation of Lebanese law, by funneling hundreds of millions of dollars through layered shell companies to invest in European real estate," the U.S. Treasury Department said in a statement. 

             "To enrich oneself and one's fellows by doing so." Said the statement.

The sanctions also apply to the former governor's brother, Raja Salama, and his former aide, Marian Hawek. 

Washington and London also sanctioned Anna Kosakova, who has a child with Riyad Salama, and the US also chose to ban her son Nadi Salama.

The sanctions freeze the assets of Riaz Salama and his associates and prohibit transactions between them and US citizens or businesses.

Canadian Foreign Minister Melanie Joly said the sanctions send a message that countries "will not tolerate the acts of significant corruption that have caused Lebanon's economic collapse".

Salama has denied the corruption allegations and said he will challenge them, adding that some of his assets have already been frozen in previous investigations.

A Tainted Legacy of Salama

The disgraced former governor of the central bank, known as Banque du Liban, stepped down on July 31 after serving in the role since 1993. 

Once known as a financial genius, Salama now has a tarnished legacy due to the collapse of Lebanon's banking sector, as well as allegations of corruption at home and abroad.

In February, Lebanon charged him with embezzlement, money laundering and tax evasion.

In May, French and German authorities also issued warrants for his arrest, with Interpol red notices naming him wanted in both countries for money laundering.

In March last year, France, Germany and Luxembourg seized assets worth 120 million euros ($135m) in an investigation into his wealth.

A European diplomatic source said Salama will soon be tried in Paris.

Salama has said that he has been made a scapegoat for Lebanon's economic crisis.

Lebanon's currency has lost 98 percent of its value against the US dollar due to decades of corruption by state officials. Many blame Salama and his associates for mismanaging the country's economy.

(Courtesy: Al-Jazeera)