Revealed: Riad Salameh accused of using embezzled millions to build vast property empire
The first definitive account of how prosecutors believe the Lebanese central bank governor and his accomplices stole up to $330m – and what they did with the money
The National can today reveal the full extent of the prosecution case against Riad Salameh, the Lebanon central bank chief accused of embezzling $330 million from the financially stricken country.
Previously unseen documents, obtained by The National from two independent sources, disclose in detail how Mr Salameh is alleged to have siphoned the funds into Europe and the US, the companies created to execute the plan, the accomplices he is said to have used and the vast property empire he now controls.
Among the new revelations are:
– A complete mapping of the Salameh clan's vast real estate empire across Europe, which has been seized by the judiciary for a total value of about $92 million. This includes mansions in prime areas of European capitals and industrial and commercial buildings that generate significant rental income, all suspected to have been acquired with Lebanese public funds.
– Previously undisclosed US real estate tied to Raja Salameh, the governor's brother, shedding light on the expansive reach of the Salameh empire worldwide, with identified properties alone valued at a minimum of $4.4 million.
– The family affair behind the scheme, the assigned roles of family members and the relevant assets they own.
– The indirect enabler of the alleged money laundering scheme and, notably, the lack of due diligence from European banks, which allowed about $100 million of suspicious funds to flow through Luxembourg-based companies, all while the EU banks displayed “no concern” regarding “the origin of [Riad Salameh's] wealth”.
– New alleged protagonists under investigation, with figures such as Christian Noyer, a former French central banker who provided undeclared consultancy services for Lebanon's central bank.
– The behind-the-scenes details of the investigation, involving hearings, detentions and large-scale police raids.
France, Luxembourg, Germany, Switzerland, Belgium and Liechtenstein are all investigating Riad Salameh for alleged embezzlement from the Lebanon central bank with the suspected assistance of his brother, Raja.
It is alleged that the governor funnelled public funds through commissions paid to his brother’s company, neph Associates Ltd, under an irregular agreement with Lebanon's central bank from 2002 and 2016.
During this time, Forry would collect a 0.38 per cent commission from commercial banks, without them knowing and without providing any services in return, each time they bought financial instruments from the central bank.
The alleged ill-gotten funds followed a complex journey, typical of a money laundering scheme, traversing continents and ultimately being used for the acquisition of luxury properties within the EU.
Suspicions are such that both the French and German judiciaries have issued arrest warrants for Riad Salameh, leading to an Interpol red notice.
Three people have been placed under formal investigation in France, including Marianne Hoayek, his former assistant, Anna Kosakova, his romantic partner, and Lebanese banker Marwan Kheireddine.
Investigations are still ongoing and those accused are under investigation.
Despite the money laundering allegations, Riad Salameh continues to hold his position at the helm of Lebanon's central bank.
While his mandate is set to end on July 31, uncertainty lingers over the appointment of his successor.
Riad Salameh declared in an interview on Wednesday night that he would not be seeking another term.
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Jack Mayle, 30: sold drugs from a phone line called the Flavour Quest.
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1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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