In July 2023, Riad Salameh retired after 30 years as head of Lebanon’s central bank, and is now being investigated for siphoning off hundreds of millions of dollars through accounts in Switzerland. The Financial Markets Supervisory Authority (Finma) in Switzerland has accused HSBC Private Bank (Suisse) of serious violations of money laundering regulations due to maintaining transaction accounts for Salameh.
The investigation revealed that the bank failed to adequately check the origin of the assets and their purpose and background, leading to insufficiently clarified and documented transactions with increased risk. Despite ending its business relationship with the Salameh brothers in 2016 for risk reasons, HSBC only reported the matter to the Federal Money Laundering Reporting Office in September 2020.
As a result of its investigation, Finma mandated a series of measures for HSBC, including a review of all ongoing business relationships with politically exposed persons and enhanced monitoring by an appointed auditor. The bank has acknowledged the issues raised and plans to appeal the decision while emphasizing its commitment to combatting money laundering and complying with regulations.
HSBC Private Bank (Suisse) is not new to scrutiny; it was previously reprimanded by Finma in 2011 for data theft and facing criminal proceedings in 2015 following Swissleaks revelations. Banque Audi (Suisse) was also reprimanded last March for money laundering failures related to the same individuals. The Office of the Federal Prosecutor continues to conduct a criminal investigation into aggravated money laundering against the Salameh brothers.
