A compliance officer at HSBC raised alarms in February 2013 about suspicious transactions flowing through an account held by Forry Associates, a shell company controlled by Raja Salameh, brother of Lebanon's central bank governor. More than $100 million had moved through the account with minimal documentation about the funds' origins, prompting internal concerns about potential money laundering activities.

French prosecutors have now brought preliminary charges against HSBC's Swiss Private Bank, accusing it of helping Riad Salameh embezzle funds from Banque du Liban. Investigators allege $330mn was transferred from the central bank to Forry Associates between 2002 and 2015, with an additional $204mn moving from Forry to Raja Salameh's personal account between 2009 and 2016 through 174 transactions.

The Swiss regulator Finma previously found that HSBC seriously breached anti-money laundering requirements in handling Lebanon-linked clients. The bank failed to recognize money laundering indicators and violated due diligence obligations for politically exposed persons. This follows the lender's $1.9bn settlement with US authorities in 2012 over similar lapses involving Mexican drug cartels.

HSBC has already terminated relationships with over 1,000 wealthy Middle Eastern clients amid ongoing investigations. The case centers on banker Sobhi Tabbara, who vouched for Forry Associates despite investigators later finding the company had no verifiable employees, clients, or business activities beyond receiving central bank payments. A French judge will determine whether the charges proceed to trial.