Central Bank Governor: Lebanon to Abide by U.S. Anti-Hizbullah Law

W460

Beirut will abide by a U.S. law that imposes sanctions on banks that knowingly do business with Hizbullah, Lebanon's central bank governor has said.

Riad Salameh told The Associated Press in an interview that bank officials are now studying regulations issued on Friday in Washington by the U.S. Department of the Treasury.

U.S. President Barack Obama signed the Hizbullah International Financing Prevention Act on Dec. 18. Since then, Lebanese officials and bankers have been flying to Washington to discuss the move with American officials.

Hizbullah, a group that has members in parliament and the Cabinet, is considered a terrorist organization by the United States.

Many in Lebanon are worried that the U.S. legislation will have negative effects on the Lebanese banking sector, which is one of the most active industries in the country. Several Lebanese bankers and the head of the Lebanese banking association did not return AP's requests for interviews.

Salameh's comments at the Banque Du Liban headquarters in Beirut on Monday came three days after the U.S. treasury department's Office of Foreign Assets Control, or OFAC, issued regulations aimed at implementing the Hizbullah financing prevention act.

"Our departments are studying the regulations so that there will be commitment by the banking sector to the law in accordance with the regulations," Salameh said.

Asked whether banks dealing with Hizbullah Cabinet ministers or legislators who get paid from the state will be affected, Salameh said that the law covers "significant transactions" and does not mention salaries.

The U.S. regulations say Washington will target those "knowingly facilitating a significant transaction or transactions for" Hizbullah and those "knowingly facilitating a significant transaction or transactions of a person identified on the List of Specially Designated Nationals and Blocked persons."

OFAC's list includes names of officials, businessmen and institutions that the U.S. says are linked to Hizbullah. The list includes Hizbullah leader Sayyed Hassan Nasarallah and top military commander Mustafa Badreddine as well as some businessmen. The list also includes the group's Al-Manar TV and Al-Nour Radio.

Nasarallah said in December 2015, when the law was signed, that his group does not deal with Lebanese or foreign banks.

"We have no money in Lebanese banks, neither in the past nor now," Nasarallah said in a speech. "We don't transfer our money through the Lebanese banking system."

Salameh said that he was discussing with Lebanese banks how to implement the law in "a way that does not harm the Lebanese people."

On Friday, U.S. State Department spokesman John Kirby told reporters in Washington that "these regulations are a continuation of the U.S. Government's efforts against Hizbullah and they give the U.S. Government additional sanctions authorities to go after this terrorist organization and its support apparatus worldwide."

He added that "the safety, soundness, and security of the Lebanese financial system is a great priority to the United States, and the U.S. Government will act only on the strongest evidence and the most solid evidence in our efforts to isolate Hizbullah from the international financial system."

"We'll do it in such a way that will support the Lebanese economy, that will support the Lebanese financial system, and will not target innocent people," Kirby said.

Speaking about the Lebanese economy and financial conditions, Salameh said financial flows "toward Lebanon are still positive." He added that bank deposits rose more than four percent in the first quarter of 2016 compared with the same quarter a year earlier. He that the there is no demand to transfer Lebanese pound to U.S. dollars. The pound has been pegged to the U.S. dollar for more than two decades.

"All this shows that there is confidence and we rule out any (financial) crash in Lebanon," Salameh said.

Comments 9
Thumb ashtah 19 April 2016, 07:26

Nasarallah said in December 2015, when the law was signed, that his group does not deal with Lebanese or foreign banks.

"We have no money in Lebanese banks, neither in the past nor now," Nasarallah said in a speech. "We don't transfer our money through the Lebanese banking system."

so you transfer your money in cash which is also illegal.

Thumb barrymore 19 April 2016, 08:00

he uses the iranian banking system

Default-user-icon mowaten (Guest) 19 April 2016, 08:10

Hezbollah has always abided by the rules and regulations of the Lebanese banking system. This is clearly a U.S-Zionist conspiracy against the resistance.

Default-user-icon puppet (Guest) 19 April 2016, 08:11

I respect Mr. mowaten, Mr. flamethrower and all their other aliases equally.

Thumb ex-fpm 19 April 2016, 08:23

"We have no money in Lebanese banks, neither in the past nor now," Nasarallah said

and we are to believe the 50,000 militia terrorists under his command have no bank accounts in Lebanon. Yeah right...

Missing humble 19 April 2016, 09:50

Resistance? Which resistance? The one that has divided the country and the people? The one that has spread hatred? The one that has destroyed coexistence and the living together? The one that is destroying Lebanon?

Missing humble 19 April 2016, 09:59

....Destroying Lebanon fits very well with their objectives of destruction of the economy, of the Institutions, of the Constitution and of the National Pact to put their hands on the whole country...

Thumb liberty 20 April 2016, 04:21

Suspected government air strikes on Tuesday killed at least 44 civilians at two markets in a part of northwestern Syria

http://www.naharnet.com/stories/en/207453-44-dead-in-suspected-regime-strikes-on-syria-markets

Thumb liberty 20 April 2016, 04:23

the 'natives' as big john calls them do not trust the USA and rightfully so. The U.S tasked them with fighting ISIS and not Assad. You are right 100%