BEIRUT: Lebanon’s commitment to fighting money laundering does not hurt banking secrecy but, to the contrary, is in the interests of the banking sector, said Joseph Torbey, president of the Association of Banks in Lebanon. “Lebanon’s serious commitment to fighting money laundering will prevent the escape of investments from Lebanon while protecting the reputation of the banking sector,” he said during his meeting with a delegation with the Lebanese Press Federation over the weekend.
Legislators met over a month ago and passed a number of bills, including an anti-money laundering law and an exchange of tax information law. Parliament also approved the 1999 U.N. treaty designed to criminalize acts of financing terrorism. The convention also seeks to promote policy and judicial co-operation to prevent, investigate and punish the financing of such acts.
Torbey said that banking secrecy in Lebanon still covers around 95 percent of bank accounts and it is only lifted in suspicious cases within a specific mechanism protected by the special investigation committee of the Central Bank.
Torbey explained that the judicial system is allowed to access suspicious bank accounts only by resorting to the special investigation committee at the Central Bank, which has the right to decide whether to lift banking secrecy or not.
“We have been capable of accomplishing our jobs by passing these legislations,” he said. “Our cooperation with the international community ensures our success,” he added.
Torbey said that Lebanon’s current rating is at B- due to the complicated political situation and the paralysis of government institutions. “The growth witnessed in the banking sector did not have a positive impact on the economic situation and the negative rating means that Lebanon does not provide a healthy environment for investment on the medium and long term,” he said. However, he added, the latest attempts to elect a Lebanese president are perceived positively by rating agencies.
Torbey added that the Lebanese pound is stable and the Central Bank has huge foreign currency reserves. “We also have the potential of taking part in reconstruction projects in the region, noting that we also have a promising oil and gas sector in addition to a successful tourism industry,” he said.
