BEIRUT: Lebanese bankers urged the U.S. Treasury and American officials to stick to the current sanctions against Hezbollah instead of adopting new amendments, the head of the Association of Banks in Lebanon Joseph Torbey said Monday. Torbey, who headed the ABL delegation to Washington and New York, said that the U.S. officials and correspondent banks expressed their satisfaction with the measures adopted by Lebanese banks in terms of combating money laundering and terrorism financing.
“Through these meetings, the association sought to shield the Lebanese economy from the negative repercussions of the proposed legislation, on the one hand, and to fortify the banking sector against the possible ramifications of the new law. The delegation reiterated that existing legislation is adequate, eliminating the need for additional legislation, especially as banks have succeeded in applying compliance rules through the mechanism set by the Central Bank of Lebanon and adherence to international resolutions, including the U.S. Treasury Department,” he stressed in a news conference at ABL’s headquarters.
The Lebanese delegation reviewed with the American side the much-talked-about Hezbollah International Financing Prevention Amendments Act of 2017, which is expected to be discussed by the U.S. Senate in the near future.
HIFPA 2017 seeks to cut off the flow of resources to the Hezbollah, labeled by Washington as a terrorist group. Introduced by Sens. Marco Rubio (R-FL) and Jeanne Shaheen (D-NH) and Reps. Ed Royce (R-CA) and Eliot Engel (D-NY), the measure targets foreign governments that knowingly provide significant financial support to Hezbollah and foreign individuals and companies that aid its fundraising or recruitment activities.
Torbey said that during the meetings, the delegation urged the U.S. administration and correspondent banks not to implement any new legislation that would be detrimental to or cause collateral damage to Lebanon, its economy and its banks, which are entrusted with the savings of the Lebanese. But it remains to be seen if the intensive lobbying by the Lebanese banks in Washington will succeed in getting the U.S. Congress and Senate to water down the amendments so they will not be harmful to banks and the economy.
“We basically considered that past or current U.S. legislation is appropriate and sufficient to pursue the goals of the U.S. legislator. We have already said several times that it is better not to introduce new sanctions into new legislation that require new mechanisms from the banking sector, especially the Lebanese banking sector,” Torbey said.
He added that the emphasis of the ABL mission was to ensure that the Lebanese banking sector was not exposed to new obligations.
“The Americans are fully aware of the role played by this sector [banking] in financing the Lebanese economy. It is worth mentioning that we finance the Lebanese state to continue to carry out its sovereign duties, and the Americans are aware of this,” Torbey said.
He also defended the Central Bank’s monetary policy, which has allowed Lebanon to avoid numerous crises. “The Association of Banks in Lebanon wishes all political parties and influential forces to take into account the delicate economic and financial conditions, especially the monetary situation, and the great efforts exerted by Banque du Liban to maintain monetary stability, and its success in protecting the Lebanese pound,” Torbey said.
