The Salameh clan's real estate empire in Europe includes luxurious mansions in the most expensive areas of some capitals and a portfolio of industrial and commercial buildings generating substantial rental income. This adds up to property worth $92 million – which has been seized by the authorities.
But it appears their empire stretches beyond Europe to the US, where the European judiciary has uncovered properties valued at more than $4.5 million tied to Raja Salameh, the central bank governor's brother – and probably more.
While EU investigators managed to follow the origin of the seized European assets to Forry Associates Ltd, the shell company implicated in allegedly diverting funds from Lebanon's central bank through an irregular contract between 2002 and 2016, The National was unable to directly track the funds' origin for these US investments.
Riad Salameh, the governor of Lebanon's central bank, with the help of his brother Raja Salameh, is suspected of orchestrating an alleged money laundering scheme through a 0.38% commission imposed by Forry on commercial banks for each transaction with the central bank, without any corresponding services in return.
The US judiciary has so far refrained from taking any legal action, which could potentially lead to the mapping and subsequent seizure of these assets – so verified information remains scarce.
But serious doubt lingers regarding the legitimacy of the funds.
Forry allegedly funnelled more than $330 million from the Lebanese central bank, yet only €120 million worth of assets have been seized to date, which leaves a substantial portion of the sum still unidentified.
Exclusive documents from the Monaco judiciary exposed the flow of funds from Raja's accounts at Julius Baer Monaco, which received millions of dollars in alleged Forry embezzled funds, then funnelled to his accounts in the US.
In a judicial decision, French judge Aude Buresi stressed that “the diverted funds are believed to have been transferred” and “laundered” through real estate investments in “Europe, the United States and Lebanon”.
While we have no detailed information on the Lebanese properties, French judicial documents seen by The National reveal that the governor's brother, who is also Forry's owner, is tied to expensive real estate in New York purchased during the period when the central bank had a contract with Forry.
The Salamehs' US real estate
While Europe appears as the first choice for Riad Salameh's real estate portfolio, whether in the name of his romantic partner or children, it seems that the US stands as the prime destination for Raja Salameh's investments.
Raja Salameh is alleged to be the sole associate in Wall Street Properties Limited, a Jersey-based company that holds all the shares of the company Screen Property Corporation, according to the document.
Jersey, a British Crown Dependency, has yet to enforce public disclosure of beneficial owners, despite committing to creating a public register in 2019 in line with EU standards.
In 2013, Screen Property Corporation, based in the US, acquired a luxurious apartment in a 42-storey building on Wall Street in Manhattan, right at the centre of America's main financial district, for $1.4 million.
Raja Salameh also holds shares in a Jersey-based company that indirectly owns a $3 million property bought in 2014 at 93 Worth Street, in the prime neighbourhood of Tribeca in Manhattan.
The company, called Caliber Properties Limited, with a 45 per cent ownership by Raja Salameh, was created solely to hold the shares of Caliber NY Property Corporation, an American company. Caliber NY Property Corporation, in turn, holds the property in Manhattan.
Screen Property Corporation acquired a luxurious apartment on 75 Wall Street in Manhattan for $1.4 million. Google Street View
The remaining shares are divided between Kamal Tabet, Raja Salameh's cousin, with a 45 per cent stake, and Mona Issa El Khoury, his sister, with a 10 per cent stake.
Ms El Khoury's son, Marwan Issa El Khoury, a director and legal representative of several Salameh-owned entities that are implicated in the alleged money laundering scheme, is also alleged to be the legal representative of the two Jersey-based companies and the director of the two US companies, accordingto the document.
Mr Issa El Khoury responded to The National's queries with a letter. Mona Issa El Khoury also responded to us with a letter.
According to banking documents obtained by The National, Caliber NY Property Corporation has an account at Interaudi Bank, whose beneficial owners are Raja Salameh and Mr Tabet.
The Monaco judiciary found out that Raja Salameh transferred a total of $1.3 million from his Monaco bank account, which was opened in 2012 at Julius Baer, to his personal US account at Interaudi Bank a year before the initial purchase took place.
His Monaco accounts received $1.6 million from his Swiss account at HSBC, which was funded exclusively by Forry.
“It cannot be ruled out that the funds in Raja Salameh's Swiss account may have an illicit origin”, according to the Monaco document.
Both Ms Issa El Khoury and Mr Tabet told The National the funding came from their personal savings.
Mr Tabet, a banker, “had a stellar and highly lucrative professional career in the US and Europe”, his lawyer Michael Haddad told The National.
“It is only through his hard work, professional success and investing experience that Mr Tabet earned the resources to build up his wealth and property portfolio”, he added.
He stressed that the three investors involved in the New York purchase are “independent " and just happened “to have a family relationship”.
Raja Salameh failed to respond to request for comment from The National.
In the past, he has denied any wrongdoing, presenting Forry's activities as those of a legitimate broker.
The European judiciary did not uncover evidence of any actual operational activities.
The property on 93 Worth Street, located in the prime neighbourhood of Tribeca in Manhattan, was purchased for $3 million in 2014. Google Street View.
A family affair
But Raja Salameh also possesses properties in Europe that have not previously been identified in the media.
On October 21, 2021, at 6.30am, six French police officers arrived unannounced at his residence in the 16th arrondissement of Paris.
They conducted a surprise raid on his apartment, resulting in his immediate detention for 24 hours. This incident has not been previously reported.
Raja Salameh, declared as “unemployed” in the hearing's minutes seen by The National, was subjected to hours of interrogation by the French police concerning the legitimacy of his French property purchases in relation to his declared income.
Among the assets under suspicion is an apartment purchased in 2013 on Avenue Victor Hugo in the 16th arrondissement. Raja Salameh, together with his wife, Nada Boustani, 61, and three children, Emile, Raya, and Karim, acquired this property for a total of €3.6 million.
Raja Salameh told the police that he paid his share without taking a loan.
According to Raja Salameh, the children financed their share through loans from a Lebanese bank. These loans were subsequently repaid a few years later by “a family member”, Raja Salameh told the police, “maybe by myself or my spouse”.
Additionally, in 2011, Raja Salameh's children bought an apartment on Avenue Raymond Poincare in the 16th arrondissement for €1.2 million.
At that time, the youngest child was 18.
Raja Salameh said to the police that the children obtained a loan from a Lebanese bank, which was also repaid by him or his spouse.
In 2013, the children granted Raja Salameh and his spouse the “usufruct” rights to one quarter of the property. This means the legal right to use and derive benefits from it.
Following a division of assets, the real estate properties were allocated to their daughter, who was 26 years old at the time. As compensation to her two brothers, she paid €376,250.
Raja Salameh was questioned by French police in 2021. Photo: NNA
Raja Salameh told the police he does not know how his daughter repaid her brother in this matter.
Nada Boustani and Raya, Emile and Karim Salameh did not respond to The National's request for comment.
These apartments have been rented out since their purchase for approximately €4,000 per month – with the exception of a two-and-a-half-year period, because of unpaid rent.
Raja Salameh, while being questioned by French police in relation to a money laundering investigation concerning his family's investments, complained that he “had to file an eviction case in court to have her removed”.
“To this day, [the tenant] has not reimbursed me”, he added.
Raja Salameh told the police that he also owns two companies, the names of which he had “forgotten”, which own a dozen studios and apartments in London, all rented.
The National could not identify these properties.
His hearing with the police suggests that his role as the manager of Forry, which he said he established after serving as a representative for Republic National Bank of New York from 1985 to 2003, was his primary source of income.
Monaco judicial documents also show transfers between Raja Salameh and his son, Emile, from one of the Monaco accounts which received Forry funds.
Following the 2021 hearing, Raja Salameh was released without charges.
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Oxlade-Chamberlain 9', Firmino 59', Mane 61', Salah 68'
Manchester City 3
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Expert input
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Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
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Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
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It occurs mostly in people under 40 and a result of the pancreas failing to produce enough insulin to regulate blood sugars.
Too much or too little blood sugar can result in an attack where sufferers lose consciousness in serious cases.
Being overweight or obese increases the chances of developing the more common type 2 diabetes.
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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Beat China by 16 runs
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Beat Nepal by five runs
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You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
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