After Being Indicted, Lebanese Banker Transfered UK Real Estate Holdings to Brother

As French authorities pursued money laundering charges against him, Lebanese banker Marwan Kheireddine quietly moved his assets out of reach, shifting control of his $200 million U.K. real estate empire to his brother, reporters from OCCRP’s Lebanese partner, Daraj, discovered.

Kheireddine was a close associate of embattled former central bank governor Riad Salame, who was once praised for maintaining Lebanon’s financial stability but later faced accusations of embezzling hundreds of millions of dollars in public funds.

European prosecutors have linked Salame to a vast money laundering network, with investigations in France, Germany, and Switzerland alleging that he and his associates funneled illicit wealth through offshore accounts and luxury properties. Salame denies wrongdoing, claiming the charges are politically motivated.

The properties of one of those associates, Kheireddine, are spread across some of London’s most exclusive districts and valued at over $200 million. They were previously held through a network of offshore companies, but documents analyzed by Daraj show that by July 1, 2023—four months after his indictment—Kheireddine was removed as a beneficiary of at least 15 such entities.

For over a decade, the Kheireddine family has controlled significant real estate in the U.K., including Aldford House, a luxury apartment block in Mayfair, acquired in 2012 for £86 million (approximately $158 million today). At the time of purchase, its new owner, K Group Holding Inc., was jointly controlled by Marwan and his brother, Wassim Kheireddine.

The Kheireddines also held prime real estate in other high-value locations, including Nine Elms, overlooking the River Thames, and Danesfield House, a historic country estate in Buckinghamshire, bought in 2004 for £22 million. These properties, along with others, were owned via offshore structures based in Panama, shielding them from scrutiny.

In April 2023, French prosecutors questioned Kheireddine in connection with an ongoing corruption probe into Riad Salame, Lebanon’s former central bank governor. Authorities confiscated Kheireddine’s devices and passport, restricting him from leaving France.

Salame, who led Lebanon’s central bank for 30 years, is accused of embezzling hundreds of millions of dollars in public funds, with European prosecutors tracing at least $150 million held in his accounts at Bank al-Mawarid, a bank owned by the Kheireddine family.

Sherpa, the French NGO that filed a criminal complaint against Salame and his associates, told Daraj that evidence pointed to Kheireddine playing a "central role in the conspiracy."

Despite telling investigators in April 2023 that his brother Wassim had managed their business dealings in London since 2018, corporate records showed that Marwan remained a beneficial owner of multiple offshore firms linked to these properties.

On July 1, 2023—just a few months after being held in Paris—Marwan was removed as the beneficial owner of at least 15 offshore companies, including those controlling Aldford House and Danesfield House.

“A major focus of this investigation is tracking illicit wealth and ensuring its restitution to the Lebanese people,” said Chanez Mensous, an advocacy and litigation manager at Sherpa.

When asked about the timing of his share transfer in Panamanian companies to his brother, Marwan Kheireddine told Daraj that it was part of “the family’s estate management that started in 2012 and was completed in 2023, unrelated to the French procedure.” He did not provide evidence to support this claim.

Regarding the French investigation, Kheireddine emphasized that it “targets Riad Salame and his close associates and family members, not me.” He also noted that “none of my assets were frozen anywhere in the world at any point.”

Kheireddine denied hiding assets through Panamanian companies, explaining that Panama offers favorable rates for “legal vehicles that own an asset,” which his family uses for their real estate holdings. He stated that “each of those companies must be registered with Companies House in the U.K., declaring the ultimate beneficial owner.”

While it is true that beneficial owners of offshore companies buying or selling land in the U.K. must be registered with Companies House, this requirement only began in 2022 under the Economic Crime (Transparency and Enforcement) Act, which established the Register of Overseas Entities to “drive dirty money out of the U.K.”