This month’s top stories:
- Swedish court sentences former CEO of Swedbank to 15 months in prison for gross fraud in making “misleading” comments to the press in 2018;
- Former governor of Lebanese Central Bank charged with embezzling at least USD 42 million; and
- Mayor of New York City indicted on charges of bribery, fraud, and violations of campaign finance laws.
Middle east and North Africa
Lebanon: Former Central Bank chief charged with embezzling at least USD 42 million
On 3 September, Riad Salameh, the governor of Lebanon’s Central Bank between 1993 and 2023, was arrested in Beirut and charged with embezzling at least USD 42 million from the Central Bank. The charges reportedly pertain to illicit commissions earned by Salameh between 2015-2018 in an agreement between the Bank and Optimum Invest, a Lebanese brokerage and financial services company. Salameh pleaded not guilty on 9 September. Salameh is also the subject of an Interpol red notice, and is sanctioned by the UK, US, and Canada. Moreover, in 2023, French authorities issued an arrest warrant for Salameh on corruption charges.
US / Lebanon: Hezbollah financier pleads guilty to sanctions evasion
On 20 September, Mohammad Ibrahim Bazzi, a financier of the Lebanese Shia Islamist political and militant group Hezbollah, pleaded guilty to sanctions evasion and money-laundering conspiracy charges. The charges related to his transfers of hundreds of thousands of US dollars from the US to Lebanon in violation of sanctions imposed on him. Bazzi has been classified as a Specially Designated Global Terrorist by the US Department of the Treasury since May 2018 owing to his involvement in providing financial, material, and technological support to Hezbollah. Bazzi also agreed to forfeit c. USD 830,000 linked to the illegal transactions in question. He faces a maximum 20-year prison sentence.
Sub-Saharan Africa
South Africa: UK businessman extradited from UK to face fraud and corruption charges
On 20 September, Michael Lomas, a UK businessman and former contractor with South Africa’s state-owned power utility Eskom, was extradited from the UK to South Africa to face charges of fraud, corruption and money laundering. Lomas is accused of helping pay over ZAR 30 million (USD 2.5 million) in kickbacks to Eskom officials to secure a ZAR 1.5 billion (USD 85 million) contract for his company, Tubular Construction Projects, a South African engineering company. Lomas allegedly made payments, both from his personal account and from Tubular’s account, to entities and accounts directly controlled by France Hlakudi, a former senior manager at Eskom. Lomas, who was first arrested in 2021, is charged alongside 11 co-accused, including Hlakudi. Lomas has not commented on the allegations against him.
Botswana: Official investigation identifies indications of potential corruption at Air Botswana
On 20 September, two senior investigating officers from Botswana’s Directorate of Intelligence and Security (DIS), the state-run investigations unit, testified in court that they had identified indications of potential corruption in the procurement process of Air Botswana, the country’s national airline. The findings emerged after the DIS investigators were assigned to covertly investigate DIS’s director general, Peter Magosi, over allegations of drug trafficking and tobacco smuggling, which led the investigators to review Air Botswana's operations and procurement practices. They also uncovered that the airline was non-compliant with aviation standards and had acquired aircraft without following standard due diligence requirements. The investigators’ findings followed reports from 6 September 2024 that Air Botswana had purchased an unairworthy aircraft for USD 22.5 million. Air Botswana has not commented on the corruption allegations.
Americas
US: NYC mayor indicted on bribery and fraud charges
On 26 September, the US Department of Justice (DOJ) indicted New York City mayor Eric Adams on charges of bribery, fraud, and violations of campaign finance laws. The DOJ alleges that Adams solicited and accepted bribes from Turkish nationals for nearly a decade, some of which were facilitated via illegal political donations and others in the form of free flights and upgrades worth more than USD 123,000, as well as free luxury hotel stays and meals in Turkey. In exchange, Adams allegedly used his position and influence to advance Turkish interests and assist key businesspeople. In one of these instances, Adams allegedly pressured a New York City Fire Department official to facilitate the opening of a new Turkish consular building without a required fire inspection. In his first court appearance, Adams pleaded not guilty and denied the charges.
Colombia: International anti-money laundering organisation suspends Colombia’s access to information sharing network
On 23 September, the Egmont Group of Financial Intelligence Units (Egmont Group), an international organisation created to combat money laundering and in which 177 countries are represented, suspended Colombia’s access to the group’s information sharing network for allegedly engaging in the unauthorised disclosure of confidential information provided by an Egmont Group member. According to the Egmont Group, during a nationally televised speech in early September, Colombia’s president Gustavo Petro (2022-present) disclosed confidential information obtained through the Egmont Group, which implicated the administration of former Colombian president Iván Duque (2018-2022). According to Petro, Duque had paid USD 11 million to an Israeli company to purchase spyware used on activists and his political opposition, including Petro himself. Colombia’s suspension is temporary pending the results of the Egmont Group’s ongoing investigation.
US: Treasury sanctions individuals and entities linked to Mexican and Colombian drug cartels
On 24 September, the US Department of Treasury sanctioned five Colombian nationals and two Mexican companies allegedly involved in transborder drug trafficking. According to the Treasury, the Colombian individuals hold leadership positions within the Clan del Golfo, one of Colombia’s largest drug trafficking organisations that has also been linked to human trafficking between Panama and Colombia. Separately, the Treasury sanctioned two businesses in the western Mexican states of Sinaloa and Sonora linked to the notorious Sinaloa Cartel drug trafficking organisation. The two entities that operate as a food business and retail pharmacy were established with drug proceeds and are ultimately owned by individuals associated with the Sinaloa Cartel. The sanctions highlight the Treasury’s renewed enforcement actions against seemingly legitimate businesses linked to the Sinaloa Cartel, and which have been used to launder illegal proceeds.
Europe
Sweden: Former CEO of Swedbank sentenced to 15 months in prison over misleading statements regarding money laundering scandal
On 10 September, a Swedish court sentenced Birgitte Bonnesen, the former CEO of Sweden-headquartered bank Swedbank, to 15 months in prison on a charge of gross fraud, overturning a previous acquittal. The Svea Court of Appeal convicted Bonnesen of gross fraud in relation to “misleading” comments she made to Swedish media in 2018 regarding a money laundering scandal associated with Swedbank’s Estonian branch. Prosecutors alleged that her statements to the press gave misleading information to shareholders and the public, and filed charges of gross fraud and market manipulation against her. Despite being acquitted by the Stockholm District Court in January 2023, the Svea Court of Appeal found Bonnesen guilty on one count of gross fraud. Bonnesen has consistently denied all charges and is expected to appeal the verdict to the Swedish Supreme Court.
Russia and CIS
Russia: UK sanctions ten vessels in Russia’s “shadow fleet” and five LNG tankers
On 11 September, the UK sanctioned ten vessels in Russia’s “shadow fleet” of oil tankers that continue to transport Russian oil. The “shadow fleet” has been used by the Russian state to circumvent the price cap on Russian-origin oil introduced by the G7. The UK government estimated that three of the sanctioned vessels alone had transported Russian oil worth more than USD 5 billion since Russia’s full-scale invasion of Ukraine in late February 2022. (The UK had previously sanctioned 15 vessels in the “shadow fleet” in June and July 2024.) On 26 September, the UK imposed its first set of sanctions on liquefied natural gas (LNG) vessels, targeting five vessels involved in shipping Russian LNG and two operating companies. The UK had previously sanctioned Russia’s Arctic LNG 2 project – a gas field and LNG plant under development in Russia – in February 2024.
Georgia: US sanctions Georgian law enforcement officials and media figures in response to violent crackdowns on protests
On 16 September, the US Treasury imposed full blocking sanctions under the Magnitsky Act on two Georgian law enforcement officials and two Georgian media figures for their roles in the violent crackdown on protests since 2021. The two officials – Zviad Kharazishvili and Mileri Lagazauri – were sanctioned for overseeing violence against protestors, journalists, and opposition activists who spoke out in May 2024 against Georgia’s Law on Transparency of Foreign Influence, which has been criticised internationally for restricting freedom of speech. The two media figures – Konstantine Morgoshia and Zurab Makharadze – were sanctioned for encouraging violence against pro-democracy protestors, journalists, and the LGBTQI+ community in 2021 and 2023. In parallel, the US Department of State imposed visa restrictions on over 60 Georgian individuals – including senior government officials, senior business figures, and individuals accused of spreading disinformation – for their role in undermining democracy in Georgia. On 22 September, US-funded broadcaster Voice of America reported that the US was planning to sanction former Georgian prime minister Bidzina Ivanishvili for supporting Russian oligarchs and the Russian intelligence service.
