Salameh Meets Miqati, Says U.S. Lawsuit against Financial Entities is Individual Case

Central Bank governor Riyad Salameh stressed on Thursday that a lawsuit filed in a New York federal court last week against some Lebanese financial entities is an individual case that doesn’t target Lebanon’s banking sector.

“The civil lawsuit on the Lebanese-Canadian Bank and several other exchange companies is an individual case and is being solved through the judiciary, which confirms that the Lebanese banking sector as a whole hasn’t been targeted,” Salameh told Premier Najib Miqati during a meeting they held at the Grand Serail.

Last week, a criminal complaint in the Manhattan court targeted the LCB, the Hassan Ayash Exchange Company and Ellissa Holding, in a scheme to launder profits from narcotics dealing and other criminal activities to help Hizbullah.

Salameh warned against expanding the list of the defendants and rejected issuing pre-judged verdicts against them.

He stressed that the Lebanese banking sector is abiding by international standards, saying there is a “continuous cooperation between the Central Bank and local banks to protect the sector against any attempt aimed at ruining its reputation.”

The governor’s comments came the same day Hizbullah denied the U.S. allegations of involvement in a $300 million laundering scheme and drugs trafficking, saying they are aimed at targeting the resistance and tarnishing its image.

The Lebanese subsidiary of Societe Generale (SGBL) has acquired the assets of the LCB after Washington accused it of money laundering and ties to Hizbullah.

During his meeting with Salameh, Miqati reiterated his confidence in the banking sector which he said constitutes a “major pillar of stability in Lebanon.”

The sector “should be kept away from the political bickering” and the few cases of lawsuits filed on Lebanese financial institutions should not be generalized on the entire sector, he said.