By PAUL O’DONOGHUE, Senior Correspondent
HSBC’s Swiss unit faces a formal probe in France over its links to the former Lebanese central bank governor, who is accused of embezzling over $300m.
The bank is being probed in relation to allegations of conspiracy to commit offences. These include misappropriation of public funds, breach of trust and bribery of a public official.
In France, preliminary charges show that prosecutors believe there is evidence to open a deeper investigation on an issue. The judge will then decide whether to proceed to trial or dismiss the case.
HSBC did not immediately respond to a request for comment.
Le Monde reported that the bank was required to pay €80 million in bail, due to “potential future damages and interest it may have to cover”.
In 2024, Swiss watchdog FINMA found serious breaches of AML rules linked to over $300 million of transactions between Switzerland and Lebanon.
HSBC and embezzlement case
French authorities opened the investigation in July 2021.
Investigators suspect former central bank governor Riad Salameh played a central role in the embezzlement of over $300 million between 2002 and 2015. Salameh has consistently denied the allegations.
Authorities allege HSBC failed to flag suspicious transactions for more than a decade. Reports say those transactions potentially involved hundreds of millions of dollars.
Many of the payments linked to accounts held by Raja Salameh, the brother of the former central bank governor.
Compliance officers raised concerns inside HSBC. However, staff still allowed Raja Salameh to bank with the institution, according to previous reports.
FINMA, the Swiss financial regulator, also previously found that HSBC did not properly scrutinise $300 million worth of transactions in the case.
FINMA said the funds “originated from a government institution”.
It said that HSBC Switzerland failed to recognise the indications of money laundering presented by these transactions.
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