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| Riyad Salama Image Credit: Google |
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.
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