Paris, France – Wednesday, June 10, 2026 – French financial prosecutors (Parquet National Financier – PNF) have formally charged Raja Salameh, brother of former Lebanese central bank governor Riad Salameh, with a cascade of serious financial crimes including embezzlement, money laundering, and bribery. The charges, announced today, stem from an alleged scheme that siphoned over $300 million from Lebanon’s central bank, Banque du Liban (BDL).
The breaking development marks a significant escalation in the international investigation into the financial activities of the Salameh brothers. Raja Salameh, a Lebanese/French national, faces accusations of orchestrating a complex fraud through an offshore company, Forry Associates Ltd., to illicitly enrich himself and his brother at the expense of the Lebanese state.
The Charges Against Raja Salameh
Specifically, Raja Salameh has been charged in France with criminal conspiracy to commit offenses, including the embezzlement of public funds by a public official to the detriment of the State of Lebanon, aggravated breach of trust, active and passive corruption of a public official, and the concealment and organized money laundering of these offenses. He also faces a standalone charge of organized money laundering. These charges reflect a multi-year investigation by French authorities into a scheme that allegedly ran for over a decade, between April 2002 and March 2015.
The core of the prosecution’s case revolves around Forry Associates Ltd., an offshore company registered in the British Virgin Islands and beneficially owned by Raja Salameh until its dissolution in 2016. Investigators allege that Forry Associates was awarded a brokerage contract by the BDL in 2002, signed by Riad Salameh, to sell treasury bonds and Eurobonds. However, French prosecutors contend that these brokerage contracts “do not correspond to any real service performed by Forry,” asserting that the company had no employees or legitimate operations, functioning purely as a front.
Scale of the Crime: $300 Million Diverted Amidst National Crisis
The alleged scheme involved the embezzlement of over $300 million, with some reports citing figures as high as $330 million, directly from the Banque du Liban. These funds were allegedly routed through Forry Associates and then to accounts at HSBC Private Bank in Switzerland, before being channeled to accounts controlled by the Salameh brothers. The laundered money was then purportedly used by Raja Salameh and others to acquire real estate across Europe, including properties in Germany and Paris.
While the primary victim is the Lebanese state and its central bank, the broader context of this alleged fraud is Lebanon’s devastating economic and financial crisis, which began in 2019. This crisis has seen millions of Lebanese citizens lose their life savings and the national currency depreciate by over 95%. The diversion of such substantial public funds through illicit means has undoubtedly exacerbated the nation’s financial woes, drawing sharp criticism from anti-corruption NGOs and victim groups.
“This case highlights the catastrophic impact of alleged financial misconduct on a nation already grappling with an unprecedented economic collapse. The scale of the alleged embezzlement is staggering, representing a profound betrayal of public trust.”
Who Is Raja Salameh?
Raja Salameh, believed to be around 62 years old, is primarily known as the brother of Riad Salameh, the former long-serving governor of Lebanon’s central bank. His professional activities have been closely linked to financial dealings, most notably through his ownership of Forry Associates Ltd., the central entity in the alleged fraud. He holds dual Lebanese and French nationality.
Investigation Details: A Multi-Jurisdictional Pursuit
The investigation into Raja Salameh’s activities has been a complex, multi-jurisdictional effort. French financial prosecutors, examining magistrates at the Financial Pole of the Paris Judicial Court, and Switzerland’s Office of the Attorney General have been at the forefront. Prosecutors in Munich, Germany, along with authorities in Lebanon, Belgium, Luxembourg, and Liechtenstein, have also played roles in uncovering the alleged scheme.
The fraud came to light through a combination of factors, including suspicious transaction reports filed by Swiss banks to Switzerland’s Money Laundering Reporting Office in October 2020. This was further propelled by complaints from anti-corruption NGOs like Sherpa and Accountability Now, as well as the Collective of Victims of Fraudulent and Criminal Practices in Lebanon. Investigative journalism, particularly by the Organized Crime and Corruption Reporting Project (OCCRP) in collaboration with Daraj, also shed critical light on the alleged financial misconduct.
Internal ‘red flags’ at HSBC’s Swiss unit regarding Raja Salameh’s accounts were reportedly raised as early as 2006 and 2009 but were allegedly dismissed or overruled. In a significant development, HSBC’s Swiss unit was formally charged in France on June 4, 2026, for organized money laundering and conspiracy related to the alleged embezzlement.
What Happens Next?
With Raja Salameh now formally charged in France, the legal proceedings will continue to unfold. He was previously placed under judicial supervision in France in August 2024, including the obligation to post bail, after being questioned by examining magistrates in Paris. He has since returned to Lebanon, where he was arrested in March 2022 and charged locally with complicity in illicit enrichment, money laundering, embezzlement, and smuggling large amounts of money. He was released on LL100 billion bail (approximately $3.7 million at the time) in May 2022, with a travel ban and asset freezes on 40 of his properties. Asset freezes have also been implemented in Germany, where properties worth around 35 million euros linked to the Salameh brothers were seized.
Raja Salameh denies having committed any offense. The ongoing investigations and legal processes in multiple countries indicate a lengthy battle ahead, with potential further charges or indictments possible. The case against Raja Salameh is intricately linked to the broader legal challenges faced by his brother, Riad Salameh, and could provide crucial insights into the alleged systematic siphoning of public funds.
Protecting Yourself: Recognizing the Red Flags of Financial Fraud
The alleged scheme involving Raja Salameh serves as a stark reminder of the sophisticated methods employed in financial fraud. Readers and investors should be vigilant for several red flags. The use of offshore companies, particularly those with no apparent legitimate business activity or employees, for significant financial transactions should always trigger intense scrutiny. A lack of transparency in financial dealings, especially when involving politically exposed persons (PEPs) or their associates, warrants heightened due diligence. Related fraud investigations often reveal instances where internal compliance warnings are ignored, emphasizing the need for robust internal controls and independent oversight within financial institutions. Unusually large transfers of funds marked vaguely as ‘private expenses’ or through complex, circuitous routes are also significant warning signs. Staying informed and questioning opaque financial structures are crucial steps in protecting against such illicit schemes.
