Lebanon's central bank said Wednesday that an outside firm had begun a forensic audit into past transactions linked to its foreign assets, scrutinizing them for evidence of graft in the wake of the country's economic collapse. The move is part of measures the institution has taken to improve oversight, steps that have also resulted in the arrest of the body's former governor, Riad Salameh. A forensic audit has also been a key demand of the international community and the International Monetary Fund as Lebanon seeks bailout funds after the economic crash, which began in 2019. The central bank said Wednesday that on August 17, the New York-based Alvarez & Marsal began the forensic audit of "selected transactions", covering the period from October 2019 to the end of 2023. The audit includes "transactions related to the central bank's foreign assets, including subsidy programs for essential goods and materials" as well as other transfers, it said. In May, the central bank had said that the audit aimed to verify that payments and transfers "were executed pursuant to proper authorizations and approvals", and that funds "were used for their intended purposes, without any violation, misuse, or misappropriation". In 2020, Alvarez & Marsal had launched an audit of the central bank but later halted work after the body failed to hand over necessary data. The firm resumed that audit the following year, and its preliminary report in 2023 painted a damning picture of the institution under long-serving former governor Salameh. Salameh, who headed the bank from 1993 to July 2023, is widely viewed as a key culprit in the country's dramatic economic crash and is accused of having amassed a fortune during his time in the job. He has faced numerous accusations including embezzlement and tax evasion in probes in Lebanon and abroad but has consistently denied any wrongdoing, insisting he is being made a "scapegoat" for the economic collapse. He was arrested in September 2024 and charged with offenses including the alleged embezzlement of $44 million from the central bank, but was released a year later after posting record bail of more than $14 million. He was placed in custody again in July over accusations including embezzlement and illegal enrichment after a complaint lodged by the new central bank authorities.
