HSBC Private Bank Suisse has been formally charged with organized money laundering and conspiracy in connection with roughly $330 million allegedly siphoned from Lebanon’s central bank. The charges, filed by French financial prosecutors on June 4, represent one of the more damning indictments of compliance failure at a major global bank in recent memory.
The core allegation is straightforward in its audacity. Former Lebanese central bank governor Riad Salameh and his brother Raja allegedly embezzled approximately $330 million, equivalent to around €283 million, from the institution between 2002 and 2015. HSBC’s Swiss arm reportedly facilitated the scheme despite receiving roughly 300 internal compliance alerts over a 14-year stretch flagging the suspicious activity.
How the scheme allegedly worked
The investigation uncovered a layered financial arrangement designed to obscure the money trail. Commissions from Lebanese commercial banks, tied to financial products issued by the central bank, were reportedly funneled through an offshore entity called Forry Associates Ltd. That company was covertly owned by Raja Salameh, the former governor’s brother.
The bank has been ordered to post €80 million in bail following the charges. The charges against HSBC include organized money laundering and conspiracy to commit multiple offenses, specifically embezzlement of public funds and bribery of a public official.
