A delegation of European judicial officials is moving forward with its investigation into an alleged $330 million corruption case against Lebanon's central bank governor Riad Salameh.
Witnesses include Marwan Kheireddine, chief executive of Lebanese Al Mawarid Bank, who was questioned on Tuesday in Beirut for several hours, AFP reported, citing an anonymous official source.
Jean Tannous, the judge appointed in 2021 to lead the Lebanese investigation into alleged financial misconduct by Riad Salameh, last year questioned Mr Kheireddine over vast cash withdrawals made from the governor's brother's account at Al Mawarid, according to judicial documents seen by The National.
Mr Kheireddine is a former state minister, also known for his close ties with Riad Salameh. He ran for parliament in elections last year but lost to independent candidate Firas Hamdan. He could not be reached immediately for comment.
AFP reported bankers were questioned about the Lebanese bank accounts of the governor's brother, Raja Salameh, as well as money transferred abroad to Riad Salameh.
Six European countries have opened investigations since 2020 into the Banque du Liban (BDL) governor over the alleged embezzlement of more than $330 million through a brokerage contract awarded to his brother's company, Forry Associates, in 2002.
Banks were unwittingly paying commissions to Forry each time they bought Banque du Liban's financial products — certificates of deposit, Eurobonds and Treasury bills.
European investigators tracked an alleged money-laundering scheme, from a BDL account which paid the commissions to fund luxurious properties in Europe for Riad Salameh and his entourage, judicial documents seen by The National reveal.
Both brothers deny any wrongdoing.
Riad Salameh, who has not been convicted of any crimes, rejects the accusation of embezzlement, stressing that the commissions in question were not deemed public funds.
Is Al Mawarid involved?
According to documents from the Lebanese judicial file, which was shared with the EU investigation, Al Mawarid is suspected to have played a role in the alleged laundering scheme.
It is reported that Raja Salameh has three accounts at Al Mawarid, which yielded a "very high return on investments", wrote Mr Tannous, "so that $15 million initially invested became $150 million", between 1993 and the closure of the account in September 2019.
This was only a month before the country entered a steep liquidity crisis, which led Lebanese banks to impose draconian limits on withdrawals and transfers abroad outside any legal framework.
The Lebanese prosecutor's attention was drawn to vast cash withdrawals, including "an amount of 1 billion Lebanese pounds ... once withdrawn in cash" (around $666,666 before the 2019 crisis), which were then deposited "by cheques and bank transfers to Riad Salameh's account at the Banque du Liban", the judge added, citing Riad Salameh's own statement during one of his hearings with Mr Tannous.
These cash withdrawals "are either irregular or conceal money laundering", the judge wrote.
Mr Kheireddine said in last year's hearing with the Lebanese judge that he was unaware the money in Raja Salameh's account belonged to the governor, according to the minutes of the questioning seen by The National.
"The money was delivered to Raja Salameh in boxes" when withdrawn in Lebanese pounds — "it was delivered in a bag or an envelope if the amount was small", when withdrawn in dollars, he said.
He did not ask the reason behind these withdrawals because "a lot of people used to do the same thing", he claimed.
Key banking information
Visiting European investigators have also questioned other witnesses, including former BDL vice governors and other managers.
An informed source says they are on Wednesday to question Raed Charafeddine, BDL vice governor from 2009 to 2019.
This week they examined Raja Salameh's Lebanese bank records, Reuters reported. Two sources familiar with the matter confirmed the information to The National.
Raja Salameh has accounts at several Lebanese banks — not only Al Mawarid — into which the bulk of Forry's commissions were transferred.
Due to banking secrecy laws and unco-operative authorities, European investigators were able to only partially track the money once it was transferred to Lebanon as they could not access the relevant data.
Raja Salameh's account information might reveal the identity of alleged accomplices who benefited from these transfers in Lebanon and help track the money flow in its entirety.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
Sholto Byrnes on Myanmar politics
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Killing of Qassem Suleimani
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
Match info
Champions League quarter-final, first leg
Liverpool v Porto, Tuesday, 11pm (UAE)
Matches can be watched on BeIN Sports
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Specs%20
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
MATCH INFO
Everton 0
Manchester City 2 (Laporte 45 2', Jesus 90 7')
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
UAE SQUAD
Goalkeepers: Ali Khaseif, Fahad Al Dhanhani, Mohammed Al Shamsi, Adel Al Hosani
Defenders: Bandar Al Ahbabi, Shaheen Abdulrahman, Walid Abbas, Mahmoud Khamis, Mohammed Barghash, Khalifa Al Hammadi, Hassan Al Mahrami, Yousef Jaber, Mohammed Al Attas
Midfielders: Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Majed Hassan, Abdullah Hamad, Khalfan Mubarak, Khalil Al Hammadi, Tahnoun Al Zaabi, Harib Abdallah, Mohammed Jumah
Forwards: Fabio De Lima, Caio Canedo, Ali Saleh, Ali Mabkhout, Sebastian Tagliabue
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Mohammed bin Zayed Majlis
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
ARGYLLE
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Mohammed bin Zayed Majlis
Mohammed bin Zayed Majlis
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Killing of Qassem Suleimani
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Killing of Qassem Suleimani
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
The years Ramadan fell in May
MATCH INFO
Barcelona 4 (Messi 23' pen, 45 1', 48', Busquets 85')
Celta Vigo 1 (Olaza 42')
Killing of Qassem Suleimani
The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
The five pillars of Islam
A list of the animal rescue organisations in the UAE
