HSBC Switzerland Investigated in France Over Riad Salamé Case

HSBC Private Bank Switzerland is facing legal scrutiny in France, having been placed under investigation on June 6 in connection with allegations of illicit enrichment by Riad Salamé, the former governor of the Banque du Liban. The investigation, reported by Le Monde, centers on suspicions that the Geneva-based bank aided Salamé in embezzling and concealing $330 million from Lebanon's central bank between 2002 and 2015.

The Swiss subsidiary of the British banking group has been charged with organized crime and criminal association. As a result, it has been required to post an 80 million euro bail to cover potential future damages.

Authorities allege that the embezzled funds originated from commissions paid by Lebanese banks when purchasing financial products from the Banque du Liban. These sums were reportedly channeled to an offshore company, presented as a broker, which held a dollar account at HSBC Private Bank Switzerland. A key point of contention is that Riad Salamé allegedly failed to disclose that his brother, Raja, owned this offshore company when signing the contract between the Banque du Liban and the offshore entity.