BEIRUT (Reuters) – Washington denied on Friday that it was considering imposing sanctions on Lebanon’s veteran central bank governor Riad Salameh, whose role in the country’s financial turmoil has come under fresh scrutiny.
“We have seen reports about possible sanctions on Riad Salameh. They are untrue,” a U.S. State Department spokesperson told Reuters.
A Bloomberg report on Thursday said the United States was considering sanctions against Salameh amid a broader investigation into the alleged embezzlement of public funds.
A former Merrill Lynch banker, Salameh has led Lebanon’s central bank since 1993. But the collapse of the financial system shattered his long-standing reputation as a pillar of stability in the country.
Swiss investigators are now looking into allegations of money laundering and embezzlement tied to Lebanon’s central bank, though they have not said whether Salameh is a suspect.
A Lebanese government official told Reuters in January that the Swiss authorities were probing multi-million dollar transfers by Salameh, his brother and his assistant.
Salameh has denied any wrongdoing and defended his policies.
He became a focus of anger during protests against the ruling elite as the crisis erupted in late 2019. Banks have since locked depositors out of their savings as the currency crashed, effectively throwing many into poverty.
Meanwhile, foreign donors have demanded a central bank audit as a key reform before they release any aid for Lebanon.
(Reporting by Ellen Francis and Laila Bassam; Editing by Hugh Lawson)
