BEIRUT: Central Bank Governor Riad Salameh said Thursday the U.S. lawsuit against the Lebanese Canadian Bank should be seen as an individual case and not generalized, adding that the banking sector is working to protect itself from attempts to harm its reputation.
"The lawsuit against the Lebanese Canadian Bank and a number of bankers is an individual case and it is being dealt with through judicial means. This means that Lebanon’s banking sector as a whole is not the target,” Salameh, according to Prime Minister Najib Mikati’s office, was quoted as saying during his meeting with Mikati.
Mikati and Salameh had met Thursday at the Grand Serail to discuss recent developments in the banking sector, primarily the U.S. lawsuit against the Lebanese Canadian Bank over allegations the bank had wired over $300 million into the U.S. in a money-laundering scheme that benefited Hezbollah.
Salameh spoke to Mikati about the strength and security of the banking sector in the country, emphasizing that Lebanon was committed to applying international standards.
“We should not build on the [existing] charges or expand the list of defendants: We should not judge in advance before the final verdict is out,” Salameh added.
Salameh also said that "cooperation between the Central Bank and Lebanese banks was continuous in a bid to protect the sector from any attempts to damage its reputation and durability.”
The American government is asking for nearly half-a-billion dollars in penalties from some Lebanese financial entities, 30 U.S. car buyers and a U.S. shipping company.
For his part, Mikati said he had faith in Lebanon's baking sector, which constitutes a fundamental pillar of stability in Lebanon. He said it was important to keep the sector away from political rivalries and not to amplify individual cases and generalize them.
The U.S. Treasury accused the Lebanese-Canadian Bank on Feb. 10 with money laundering and financing Hezbollah, which the U.S. considers a terrorist organization. Hezbollah denies the allegations.
In June, SGBL finalized the acquisition of the Lebanese Canadian Bank's assets and liabilities.