America calls on Lebanon to investigate “violations” of the banking system

Beirut – Archyde.com

The US Treasury Department said, on Wednesday, that a delegation from the ministry urged the Lebanese authorities to conduct investigations into what it described as violations within the Lebanese banking system by members of the political and economic elite.

The statement was issued at the end of the delegation’s three-day visit to the Lebanese capital, Beirut.

Allegations of financial misconduct once morest members of the elite escalated in the wake of the country’s financial meltdown in 2019, when banks imposed strict limits on hard currency accounts for most savers, but critics say some powerful people were able to access money more freely. The banks denied allegations of favoritism towards some customers.

“The members of the delegation stressed the need to make serious efforts to investigate these abuses, especially on the part of the Banque du Liban and the Special Investigation Commission,” in reference to the Central Bank and the investigation unit that was formed to investigate illegal financial activity, the statement said.

The statement added that “the members of the delegation called on the competent authorities to conduct the necessary investigations and technical examination regarding any related transactions.”

For its part, the Association of Banks in Lebanon said in a statement that it is committed to contributing to the fight once morest corruption, which it said was the focus of the meeting between Association President Salim Sfeir and the Treasury delegation.

Sfeir told the delegation that “representatives of the banking sector in Lebanon are still making efforts, under the current circumstances, to exercise appropriate due diligence and control the flow of funds through the banking system and apply the required compliance standards.”

The United States is the largest single donor to Lebanon, with the USAID website indicating that it provided more than $370 million in humanitarian aid to Lebanon in 2021 alone.

The Treasury Department urged the government to adopt a financial recovery plan that “maximizes returns for Lebanese depositors, especially those with relatively smaller accounts.”