Lebanon’s central bank begins audit of transactions involving foreign assets
Lebanon’s central bank has announced the start of a forensic accounting audit of certain transactions related to its foreign assets. The review is being conducted by New York-based firm Alvarez & Marsal and covers the period from October 2019 through the end of 2023.
As Asharq Al-Awsat reports, auditors will examine transactions involving the central bank’s foreign assets, including programs subsidizing essential goods and materials, as well as other transfers.
Purpose of the review
In May, the central bank said the purpose of the audit was to determine whether payments and transfers were made based on proper authorizations and approvals. The audit is also intended to establish whether funds were used for their intended purpose, without violations, misuse, or misappropriation.
Lebanon’s financial and economic crisis began in 2019. A forensic accounting audit of the central bank was one of the demands of the international community and the International Monetary Fund, as the country seeks financing following its economic collapse.
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Previous audit and the Salame case
Alvarez & Marsal had already begun reviewing the central bank in 2020 but halted its work because the necessary data were not provided. The following year, the company resumed the audit, and its preliminary 2023 report contained critical findings regarding the institution’s operations under former governor Riad Salame.
Salame headed Lebanon’s central bank from 1993 until July 2023. In Lebanon and abroad, he faced accusations including misappropriation of funds and tax evasion. He denied any wrongdoing and said he was being blamed for the country’s economic collapse.
In September 2024, Salame was detained and charged, including with the alleged embezzlement of $44 million from the central bank. A year later, he was released on bail exceeding $14 million. In July, he was taken into custody again over accusations including misappropriation of funds and illicit enrichment, following a complaint by the central bank’s new administration.
