Lebanon’s central bank announced on Thursday a series of legal and judicial measures to recover funds it says were misappropriated or misused, targeting individuals and entities that violated central bank regulations.

Governor Karim Souaid said the measures aim at anyone proven to have embezzled or abused central bank resources, actions that have drained its assets.

“These measures aim to reclaim funds that have been misused or squandered. Recovered funds will provide liquidity to repay depositors. This is a financial, institutional, and legal duty that we are committed to carrying out transparently,” he said.

Souaid said the central bank has filed a complaint against a former official and another individual who allegedly seized funds through four shell companies, resulting in illicit enrichment.

“Evidence and facts indicate that they were aware of the consequences of their actions,” he said.

The governor added that legal proceedings have also been initiated against the company "Forry Associates" which collected money on every transaction between commercial banks and the central bank.

“The central bank was the harmed party, as the money should have been returned to it,” he said.

Forry Associates was a British Virgin Islands offshore company owned by Raja Salameh, brother of Lebanon's former Central Bank Governor Riad Salameh. It siphoned from Lebanon's Central Bank (BDL) to Europe for luxury assets, operating as a key shell company in elaborate schemes involving brokerage commissions and property investments, leading to international probes and sanctions against the Salameh brothers. 

Souaid noted that preparations are underway to take legal action against additional parties, including a company whose name is currently withheld. The company allegedly used an open account at the central bank under the guise of a consultancy account to transfer large sums.

“The central bank is preparing a comprehensive report to identify, assess, and account for all funds entrusted to previous governments up to 2023, as well as funds the central bank paid on behalf of the government,” he said.

Souaid also confirmed that the central bank has begun pursuing cases abroad, coordinating with the State Litigation Authority, particularly on pending cases in Swiss courts. He emphasized that international investigators and firms are being engaged to recover funds seized abroad through companies, officials, and individuals who conspired against the bank’s resources.