The Special Investigation Commission at Lebanon's central bank, Banque du Liban (BDL), has ordered the freezing of accounts and assets belonging directly or indirectly to 11 individuals and two companies, including former central bank governor Riad Salameh, his brother Raja Salameh and his former personal assistant Marianne Hamid Al-Howayek, as part of financial and judicial investigations linked to Salameh's tenure.

According to Asharq Al-Awsat newspaper, the commission also ordered a ban on disposing of the assets and safe-deposit boxes covered by the decision and lifted banking secrecy on the accounts of those named.

The list includes a banker facing allegations related to the management of financial operations at Banque du Liban during the financial crisis that began in 2019, as well as economist Hassan Ahmad Mokalled, Andre Mushantaf and Bashir Mansour.

The two companies named in the decision are Citex Exchange and V Limited Investment Inc. Other individuals included in the measure had previously been mentioned in financial investigations linked to Salameh's tenure.

The decision does not apply to salary-domiciliation accounts.

Several of those covered by the measures have previously been targeted by U.S. sanctions. Moukalled, founder of Citex Exchange, was placed on a U.S. sanctions list along with his business partners Mushantaf and Mansour in a case involving the company.

The inclusion of Salameh, his brother, Al-Howayek and Hanna in the Lebanese decision stems from separate financial and judicial investigations, particularly those involving V Investment.

Measures to recover central bank funds

The asset freezes form part of legal and judicial measures previously announced by current Banque du Liban Governor Karim Souaid in Lebanon and abroad to recover central bank funds allegedly embezzled, misused or illegally transferred.

Souaid has said the main objective is to recover the assets and secure the liquidity needed to repay depositors.

Economist Walid Abou Sleiman said the accounts of Salameh, who headed Banque du Liban for three decades, had been frozen in Lebanon and abroad.

He said V Investment was facing a new legal claim involving Riad Salameh, Raja Salameh and Al-Howayek over the alleged embezzlement of about $70 million.

Raja Salameh had served as chairman of the company's board, Abou Sleiman said, adding that allegations surrounding V Investment had led to his inclusion in the measures.

Riad Salameh was included because he was central bank governor and because of allegations that he had granted financial facilities to the company during his tenure, Abou Sleiman said.

Citex Exchange, meanwhile, had obtained liquidity from Banque du Liban, he said, adding that the latest measures were aimed at recovering those funds for the central bank.

As for the other individuals named in the decision, Abou Sleiman told Asharq Al-Awsat that their inclusion was based on suspicions associated with them.

He said recovering allegedly misappropriated funds for Banque du Liban would serve depositors' interests and demonstrate that the central bank was working to combat money laundering. Such steps could also help Lebanon eventually move off the Financial Action Task Force's grey list, he said.

Broader investigations

Souaid had previously announced that he was filing a criminal complaint against Salameh, who is being held in prison, over financial mechanisms, offshore companies and allegations of illicit enrichment and money laundering.

The central bank has also said it would pursue anyone who violates its circulars and obtain information from banks on foreign transfers and withdrawals made by banking officials, political opponents and their relatives. That information would be provided to the judiciary when appropriate, the bank said.

In addition, Banque du Liban said it was preparing a report to identify and assess funds it had placed at the disposal of successive governments through the end of 2023.

The bank said preliminary figures indicated that the value of those funds exceeded three times the $16.5 billion amount the state had acknowledged transferring to successive governments.

It said it was pursuing legal means to recover those funds and allocate them toward repaying depositors.