Lebanon's former central bank chief Riad Salameh arrested

Lebanon's former central bank governor, Riad Salameh, was arrested during a judicial hearing in Beirut on Tuesday, a judicial source told Reuters.

Salameh has been charged with financial crimes including money laundering, embezzlement and illicit enrichment. He denies all wrongdoing.

Salameh was questioned for three hours over suspected embezzlement from the central bank exceeding $40m as part of commissions earned through the central bank's dealings with Lebanese firm Optimum Invest between 2015-2018, judicial sources told AFP and Reuters.

The brokerage firm dealt with the bank to buy and sell treasury bonds and certificates of deposit with quick turnovers to make major profits.

Judicial authorities have accused Salameh of amassing more than $110m through financial crimes involving Optimum Invest, two sources said, speaking to Reuters.

It is the first time that Salameh has appeared before Lebanon's judiciary since he left his post in July last year. 

Salameh, the architect of Lebanon's financial policy, is seen as one the chief figures who have plunged the country into the its worst economic crisis in recent history.

Previously hailed as one of the most effective central bankers in the world, his image was badly tarnished internationally since the start of the economic collapse in 2019, with several European countries investigating whether he abused his powers to embezzle Lebanese public money.

France and Germany issued arrest warrants for Salameh, though Germany cancelled it in June, reportedly due to errors and omissions.

The US, the UK and Canada also imposed sanctions on the former central bank chief in 2023, accusing him of corrupt actions to enrich himself and his associates. Salameh denies all these allegations.

Salameh will be held for four days in prison before the case is transferred to the Beirut public prosecutor, another judicial source said.