US Sanctions Former Lebanese Central Bank Chief
The United States has imposed sanctions on the former governor of Lebanon’s central bank, Riad Salameh, for his alleged involvement in a financial scandal that has rocked the country.
Background of the Scandal
The scandal began in 2019 when Lebanon’s central bank, Banque du Liban (BDL), was accused of mismanaging billions of dollars of public funds. The allegations included the misuse of public funds to prop up the country’s currency, the Lebanese pound, and to finance government projects.
The scandal has had a devastating effect on the country’s economy, with the Lebanese pound losing more than 80% of its value since 2019. The country has also been hit by a severe economic crisis, with unemployment and poverty levels soaring.
US Sanctions
In August 2023, the US Treasury Department imposed sanctions on Salameh, accusing him of “engaging in corrupt activities” and “misappropriating public funds”. The sanctions freeze any assets Salameh may have in the US and prohibit US citizens from doing business with him.
The US Treasury Department also accused Salameh of “facilitating the misappropriation of public funds” and “enriching himself and his associates”.
Reaction from Lebanon
The sanctions have been met with outrage in Lebanon, with many accusing the US of interfering in the country’s internal affairs.
The Lebanese government has condemned the sanctions, calling them “unjustified and unjustifiable”. The government has also accused the US of “attempting to undermine the sovereignty of Lebanon”.
Impact of the Sanctions
The sanctions are likely to have a significant impact on Lebanon’s economy. Salameh was widely seen as a stabilizing force in the country’s financial system, and his removal could further destabilize the economy.
The sanctions could also have a negative impact on the country’s banking sector, as US banks may be reluctant to do business with Lebanese banks due to the sanctions.
International Pressure
The US sanctions are part of a broader international effort to pressure Lebanon to address the financial scandal. The European Union has also imposed sanctions on Salameh and other individuals linked to the scandal.
The international community is also pushing for an independent investigation into the scandal. The Lebanese government has so far resisted calls for an investigation, but the pressure is likely to increase in the coming months.
Outlook
The US sanctions on Salameh are likely to have a significant impact on Lebanon’s economy and financial system. The sanctions could further destabilize the economy and make it more difficult for Lebanese banks to do business with US banks.
The international community is also likely to continue to pressure Lebanon to address the financial scandal. It remains to be seen whether the Lebanese government will agree to an independent investigation or continue to resist calls for one.