HSBC Holdings Plc's Swiss unit has been charged in France as part of an investigation into allegations it helped Riad Salameh, the former Governor of the Lebanese central bank, embezzle funds. The charges against the bank include money laundering by an organized group and conspiracy to commit offenses such as embezzlement of public funds, breach of trust, or bribery of a public official. This marks the first time a major financial institution has been implicated in the French judicial proceedings targeting Salameh and his associates. The bank was ordered to pay €80 million in bail following the charges made on May 6 and confirmed on Wednesday by France's National Financial Prosecutor's Office.
The case centers on an alleged scheme where commissions paid to Lebanon's central bank by Lebanese commercial banks were funneled to an offshore entity called Forry Associates Ltd., registered in the British Virgin Islands. Riad Salameh allegedly failed to disclose that his brother, Raja Salameh, was the true owner of Forry when the central bank signed a brokerage contract with the company in 2002. Swiss authorities have alleged that the Salameh brothers transferred over $300 million from the central bank to an HSBC Switzerland account held in Forry's name between 2002 and 2015, with hundreds of millions subsequently funneled into other Swiss accounts controlled by both men.
French investigators further allege that these funds were then used to acquire real estate in France and other European countries for Salameh and his associates. Public Eye, a Swiss NGO, revealed in March 2025 that HSBC's lax anti-money laundering controls allegedly allowed the scheme to continue for over a decade despite multiple red flags. The Swiss Financial Market Supervisory Authority had previously concluded that HSBC Geneva "seriously violated financial market law" in relation to the case and banned the bank from taking on new politically exposed customers. HSBC had previously disclosed it was under investigation by French and Swiss authorities over money laundering linked to two historical client relationships and had consequently terminated relationships with over 1,000 wealthy Middle Eastern clients, including from Saudi Arabia and Lebanon.
Riad Salameh was charged by Beirut prosecutors in 2022 with embezzling more than $330 million in public funds and has denied all allegations. He left the governorship of Banque du Liban in July 2023, and France issued an international arrest warrant for him in May 2023. As Lebanon does not extradite its nationals, HSBC represents the most prominent defendant likely to face a criminal trial in Paris should the case proceed. HSBC has stated that it is unable to comment on the ongoing legal matter and is continuing to cooperate with the investigation.
