HSBC Swiss unit charged in French probe of Lebanese funds

HSBC ↘0.27% Private Bank Suisse was charged with organized money laundering and conspiracy over the alleged embezzlement of nearly $330 million from Lebanon’s central bank, according to Le Monde.lemonde
The bank allegedly ignored internal compliance warnings for over a decade while managing an account that funneled funds through a BVI shell company controlled by Salameh’s brother.publiceye
HSBC must post €80 million bail; the charges mark a shift toward holding global banks accountable for alleged state-level corruption in Lebanon.libnanews

HSBC Swiss Unit Charged in French Lebanese Funds Probe

French financial prosecutors have formally charged HSBC Private Bank Suisse with organized money laundering and conspiracy in connection with the long-running investigation into former Lebanese central bank Governor Riad Salameh, according to reports published Wednesday by Le Monde and L’Orient-Le Jour.lorientlejour

The Charges

The charges against HSBC’s Swiss private banking subsidiary include money laundering by an organized group and conspiracy to commit offenses such as embezzlement of public funds, breach of trust, and bribery of a public official. The bank has been required to post bail of €80 million to cover potential damages.libnanews

Prosecutors suspect HSBC Private Bank Suisse served as a financial conduit for nearly $330 million embezzled from Lebanon’s central bank, the Banque du Liban, between 2002 and 2015. The funds allegedly flowed through an account held by Forry Associates Ltd, a British Virgin Islands-registered company whose beneficial owner was Raja Salameh, brother of the former governor. Investigators have identified more than 300 transactions over the period, including 192 suspicious transfers back to accounts in Lebanon.newarab

The bank has not been convicted and has contested the characterization of its responsibility, stating it is cooperating with authorities.libnanews

A Decade of Ignored Warnings

The case builds on findings by Swiss NGO Public Eye, which in March 2025 published court documents showing HSBC ignored internal compliance warnings for over a decade while managing the Forry account. The account was closed only in 2016, and HSBC did not file a suspicious activity report with Swiss authorities until 2020.amlintelligence

In June 2024, Switzerland’s financial regulator FINMA sanctioned HSBC Private Bank Suisse for serious anti-money laundering failures related to two politically exposed persons from Lebanon, prohibiting it from onboarding new such clients. The French charges now add a criminal dimension to what had been a regulatory matter.swissinfo

Wider Legal Context

The investigation stems from a 2021 complaint filed by anti-corruption organizations including Sherpa and the Collective of Victims of Fraudulent and Criminal Practices in Lebanon. Salameh, who led Lebanon’s central bank for three decades, was arrested in Beirut in September 2024 on charges of embezzlement, money laundering, and fraud. He denies all accusations, claiming his wealth predates his time in office.comsuregroup

Lebanon’s central bank has joined the French proceedings as a civil party, seeking potential restitution on behalf of Lebanese depositors who lost access to their savings after the country’s financial collapse in 2019. The formal charging of HSBC marks a shift in the case from targeting individuals to holding international financial institutions accountable for their role in alleged state-level corruption.libnanews