The President of the Association of Banks in Lebanon Salim Sfeir assured Friday that the U.S. administration has no intention to sanction more Lebanese banks, a day after the U.S. Treasury accused Jamal Trust Bank of financing the activities of Hezbollah. “There will be no new U.S. sanctions on Lebanese banks following the steps taken against Jamal Trust Bank,” Sfeir told reporters after holding talks with President Michel Aoun at Baabda Palace.
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“I met with the Americans today [Friday] and they stressed that no new banks will be affected by sanctions,” Sfeir explained.
The Association of Lebanese Banks also issued a statement that the deposits of all customers are safe
Lebanese officials and bankers have tried to allay some concerns that more Lebanese banks will be targeted by the U.S. Treasury under the pretext of terrorism funding and money laundering.
Also Friday, Central Bank Gov. Riad Salameh reassured customers of a Lebanese bank sanctioned by the U.S. Treasury Thursday that their deposits were “safe and guaranteed.”
“The Central Bank has a presence in [Jammal Trust Bank] and all legal deposits are safe and guaranteed during their scheduled maturity,” Salameh said, according to local media. He added that “liquidity was secured in order to meet the requirements of the bank’s depositors.” Salameh was responding to some reports that JTB refused to give their customers their deposits.
Jammal Trust Bank was accused Thursday of “brazenly enabling” Hezbollah’s financial activities by the U.S. Treasury’s Office of Foreign Assets Control.
Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker, described JTB as a “corrupt financial institution ... [and] a direct threat to the integrity of the Lebanese financial system,” in a statement released Thursday evening on the Treasury website.
“Jammal Trust [Bank] provides support and services to Hezbollah’s Executive Council and the Martyrs Foundation, which funnels money to the families of suicide bombers,” he added. The Lebanese bank sanctioned by the U.S. Treasury Thursday has denied “each and every allegation” related to its alleged funding of Hezbollah.
Jammal Trust Bank released a statement Friday saying its “commitment to abiding strictly by Central Bank of Lebanon rules and regulations as well as all international rules and regulations on countering money laundering and financing of terrorism is unwavering.”
The bank added that it would take “all appropriate steps” to clear its name by appealing OFAC’s decision in close coordination with Lebanon’s Central Bank and the Special Investigation Commission.The chairman of Jamal Trust Bank Anwar Jamal is expected to hold a news conference Tuesday to comment on the action taken by the U.S. Treasury against his bank.
