Reported by Sam Jones in Berlin and Raya Jalabi in Beirut

Swiss authorities have censured Lebanon’s largest bank for serious money laundering violations, after uncovering millions of francs in unexplained payments to senior political figures routed through the wealthy alpine country. 

The investigation into Bank Audi by Finma, Switzerland’s market regulator, was triggered by a corruption probe into Riad Salameh, the former longtime governor of Lebanon’s central bank, according to people familiar with the matter. 

Salameh, who has denied all allegations of misconduct, was charged by prosecutors in Beirut in 2022 with embezzling more than $330mn in public funds. 

He is also under criminal investigation in Switzerland and seven other jurisdictions, probing allegations of financial crimes. These include France and Germany, which have issued warrants for his arrest. He stepped down from his post last summer.

In a statement on Monday, Finma said it had ordered Banque Audi — the Swiss subsidiary of Bank Audi — to pay back SFr4mn in “illegally generated” profits relating to suspicious transactions and increase its capital buffer by SFr19mn. 

Finma — which does not have the statutory power to issue fines — said Banque Audi was also banned into entering into new relationships with “politically exposed persons” or other high-risk corporate clients for the next two years.

Read full report: https://www.ft.com/content/35b754e0-06df-4d63-b77c-72b92a188d68