A Swiss financial regulator has found that a subsidiary of one of Lebanon's largest banks, which has been investigated over its ties to Lebanon's former central bank governor Riad Salameh, did not do enough to prevent money laundering.
Banque Audi (Suisse) SA, a subsidiary of Bank Audi Group, one of the largest lenders in Lebanon, “breached its obligations in the prevention of money laundering” and “seriously violated financial market law”, Swiss financial regulator Finma said on Monday.
The bank is one of several suspected of sheltering hundreds of millions of dollars allegedly embezzled from the Lebanese economy by Mr Salameh, who is being investigated in Lebanon and at least five European countries.
France and Germany have issued warrants for his arrest as part of their investigations while the US and the UK have imposed sanctions on him for “abusing his position of power”.
Monday's findings conclude a 2022 enforcement proceeding initiated by Finma that was launched after an on-site inspection in 2021 uncovered significant deficiencies in the bank's anti-money laundering measures.
“Finma carried out investigations at over a dozen banks and opened enforcement proceedings in two cases in the Lebanon context,” Finma spokeswoman Patrizia Bickel told The National. “The proceeding against Banque Audi, which has now been concluded, is one of them.”
Finma claimed the bank had not adequately “clarified the origin of assets in high-risk client” and failed to report suspicious transactions to the Money Laundering Reporting Office in Switzerland.
“In doing so, the bank was in serious violation of anti-money laundering regulations,” the agency said.
In the Banque Audi case, Finma ordered the confiscation of 3.9 million Swiss francs ($4.3 million) in profit and a capital surcharge of 19 million francs.
“In the course of the proceedings, the bank has co-operated with Finma and took measures to restore compliance with the law,” the regulator said.
The bank did not respond to The National's request for comment.
'Unprecedented' measures
Finma said it reviewed Banque Audi's relationships with politically exposed people from various countries, but declined to comment on those involved.
In some cases, “there were press articles referring to the possibly unlawfully acquired assets of these persons”, the agency simply said.
In 2022, seven Swiss and Lebanese groups lodged a complaint to Finma requesting an investigation into several banks tied to Mr Salameh. The banks in question included Banque Audi.
The groups allege that Bank Audi, Zurich-based Julius Baer and BankMed Suisse, the Swiss subsidiary of another Lebanese bank, helped the embattled former bank governor to shelter millions of dollars in embezzled funds.
Mr Salameh is alleged to have embezzled more than $330 million from Lebanon's central bank through a contract awarded in 2002 to Forry Associates Ltd, his brother's company.
Judicial documents show a significant portion of the money allegedly diverted from the central bank was transferred to banking institutions in Switzerland to finance the acquisition of luxury properties in Europe.
The Swiss public prosecutor, which has opened an investigation into Mr Salameh over allegations of money laundering, is looking into Banque Audi for its involvement in a suspicious transfer of $153 million in treasury bonds by the former central bank chief.
“The Finma measures are definitely related to our complaint,” Zena Wakim, a lawyer and president of Swiss foundation Accountability Now.
“The severity of the measures taken by Finma is unprecedented, asset confiscation remains an exceptional measure and we hope that the leaders of these banks are now personally held accountable for facilitating this widespread corruption. We continue our fight against impunity outside of Lebanon.”
Lawyer Fouad Debs of the Depositors’ Union, one of the Lebanese plaintiffs that asked Finma to investigate the banks, told The National the move was “a step in the right direction”.
“It shows that Lebanese banks have not been always compliant in terms of money laundering and that they have been complicit in money laundering, which they've always denied,” he said.
Despite the ruling, he expects little change within Lebanon.
“Lebanese banking regulatory bodies, the judicial system, the security apparatus – all are under the control of the ruling class. This means that nothing will move forward here,” he said.
Jiu-jitsu calendar of events for 2017-2018:
August 5:
Round-1 of the President’s Cup in Al Ain.
August 11-13:
Asian Championship in Vietnam.
September 8-9:
Ajman International.
September 16-17
Asian Indoor and Martial Arts Games, Ashgabat.
September 22-24:
IJJF Balkan Junior Open, Montenegro.
September 23-24:
Grand Slam Los Angeles.
September 29:
Round-1 Mother of The Nation Cup.
October 13-14:
Al Ain U18 International.
September 20-21:
Al Ain International.
November 3:
Round-2 Mother of The National Cup.
November 4:
Round-2 President’s Cup.
November 10-12:
Grand Slam Rio de Janeiro.
November 24-26:
World Championship, Columbia.
November 30:
World Beach Championship, Columbia.
December 8-9:
Dubai International.
December 23:
Round-3 President’s Cup, Sharjah.
January 12-13:
Grand Slam Abu Dhabi.
January 26-27:
Fujairah International.
February 3:
Round-4 President’s Cup, Al Dhafra.
February 16-17:
Ras Al Khaimah International.
February 23-24:
The Challenge Championship.
March 10-11:
Grand Slam London.
March 16:
Final Round – Mother of The Nation.
March 17:
Final Round – President’s Cup.
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Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
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Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
The 10 Questions
- Is there a God?
- How did it all begin?
- What is inside a black hole?
- Can we predict the future?
- Is time travel possible?
- Will we survive on Earth?
- Is there other intelligent life in the universe?
- Should we colonise space?
- Will artificial intelligence outsmart us?
- How do we shape the future?
Klopp at the Kop
Matches 68; Wins 35; Draws 19; Losses 14; Goals For 133; Goals Against 82
- Eighth place in Premier League in 2015/16
- Runners-up in Europa League in 2016
- Runners-up in League Cup in 2016
- Fourth place in Premier League in 2016/17
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
UAE WARRIORS RESULTS
Featherweight
Azouz Anwar (EGY) beat Marcelo Pontes (BRA)
TKO round 2
Catchweight 90kg
Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)
Split points decision
Welterweight
Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)
TKO round 1
Flyweight (women)
Lucie Bertaud (FRA) beat Kelig Pinson (BEL)
Unanimous points decision
Lightweight
Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)
TKO round 1
Catchweight 100kg
Marc Vleiger (NED) beat Mohamed Ali (EGY)
Rear neck choke round 1
Featherweight
James Bishop (NZ) beat Mark Valerio (PHI)
TKO round 2
Welterweight
Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)
TKO round 1
Middleweight
Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)
Unanimous points decision
Bantamweight
Fabio Mello (BRA) beat Mark Alcoba (PHI)
Unanimous points decision
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)
TKO round 1
Bantamweight
Trent Girdham (AUS) beat Jayson Margallo (PHI)
TKO round 3
Lightweight
Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)
TKO round 1
Middleweight
Tarek Suleiman (SYR) beat Steve Kennedy (AUS)
Submission round 2
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
TKO round 2
