Germany aims to confiscate property seized in Lebanon ex-central bank chief probe

German prosecutors have applied to a court to confiscate some 35 million euros ($42 million) worth of property they had seized in a money laundering investigation into the former governor of Lebanon's central bank and other defendants.

Several European countries including France, Germany and Luxembourg have been investigating whether tens of millions of dollars of the funds allegedly embezzled from the central bank were laundered in Europe.

The investigation is linked to Forry Associates, a company controlled by the brother of former Lebanese central banker Riad Salameh. The brothers - who deny any wrongdoing - were accused of using Forry to divert $330 million in public funds through commissions.

"My lawyer will challenge the case and will prove that these investments are of my own funds," Salameh told Reuters when asked to comment.

The case is separate from an indictment in Lebanon of Salameh, who headed the Lebanese Central Bank for three decades, and two lawyers on charges including embezzlement of public funds, forgery and illicit enrichment.

The banker was detained for some 13 months over alleged financial crimes committed during his tenure and released after paying $14 million record bail. He remains in Lebanon, is subject to a travel ban and has denied any wrongdoing.

As part of an extensive money laundering investigation against the ex-governor and four other defendants which started in mid-2021, the properties in Munich and Hamburg and shares in a real estate company in Duesseldorf have been seized, the Munich prosecutors said in a statement.

They added that the total value was about 35 million euros.

"In January 2026, the Munich prosecutor's office applied to the Munich regional court for the confiscation of the seized real estate and company shares," said the prosecutors.

The prosecutors' office could not say what would happen to the assets if the court granted the confiscation.

The Munich prosecutor's office said in February 2024 it had seized three commercial properties in Munich and Hamburg with a total value of about 28 million euros, and shares worth about seven million euros in a Duesseldorf-based property company, as part of the case.

Lebanese authorities have said they want to reclaim the confiscated assets to help recapitalize state coffers drained in the lead-up to the country’s 2019 financial collapse.

The preliminary investigation has been provisionally suspended due to the unknown whereabouts of the suspects, said the prosecutors in their statement, adding there was a presumption of innocence until any decision was made.