HSBC and Lebanon banking controversy refers to accusation against HSBCâÂÂs Swiss private banking division for alleged failures in anti money laundering (AML) controls related to the extraction of hundreds of millions of dollars from Lebanon's central bank, Banque du Liban (BDL). This controversy is directly linked to the financial dealings of Riad Salameh, the former governor of Lebanon's central bank, and his brother Raja Salameh.
Since 1946 HSBC has operated a network of branches across Lebanon through is subsidiary HSBC Bank Middle East Ltd. Towards the end of 2016, on November 16, the bank announced it is selling its retail, corporate, and wealth management operations in Lebanon to BLOM Bank. The transaction was completed on 13 June 2017.
According to sources from 2002 up to 2015, about $300 million were transferred from Lebanon's central bank to HSBC's Swiss bank accounts. The money was later sent to different accounts connected to powerful people in Lebanon. It was said to be moved through a shell company called Forry Associates Ltd, run by Riad Salameh's brother, Raja Salameh. Prosecutors in Lebanon and Europe say this company was used to pass along commissions and other money taken from the central bank, money they claim was actually stolen public funds.
FINMA Sanctions, June 2024
In June 2024, Switzerland's financial regulator FINMA published its conclusions regarding an investigation that HSBC Private Bank (Suisse) SA had broken anti money laundering rules in a serious way. The case involved two politically exposed people, they are believed to be former Lebanese central bank governor Riad Salameh and his brother Raja Salameh. Between 2002 and 2015, over $300 million were moved from a Lebanese state institution through their accounts, without proper checks or reporting. The accounts were closed in 2016, but FINMA was not officially notified until September 2020.
Following this investigation FINMA placed sanctions on HSBC's Swiss private bank and demanded that:
In July 2025, it was revealed that there was an ongoing investigation by both French and Swiss authorities, regarding HSBC's Swiss private bank about suspected money laundering linked to it past relations in the Lebanese banking system. HSBC in its last interim report of 2025 admitted its aware of the investigation and stated it might have great implications.
Due to the pressure on it by regulators, HSBC's Swiss private bank began closing accounts of over 1,000 wealthy clients located in the Middle East, informing them to move their money elsewhere. The countries include Lebanon, Saudi Arabia, Qatar, and Egypt, with people holding accounts of many of over $100 million each.
Early in 2025 for first time in its history, the Lebanese government sued HSBC in Switzerland, claiming that HSBC did not properly check the financial activities of the Salameh brothers, who are suspected of stealing money from Lebanon's central bank.