Your Excellency, Ms. Maura Connelly
Ambassador of the United States of America,
My colleagues and myself are pleased to welcome you to our lunch today, which gives us the opportunity to exchange views, and I think you are equally interested to listen and discuss mutual concerns and issues. The banking relations between the US and Lebanon are beneficial for both countries, and the Lebanese-US cooperation, namely in terms of Anti-money Laundering and Combating the Financing of Terrorism (AML-CFT) has always been ongoing, through variable meetings and initiatives with US Treasury senior officials.
Mrs Ambassador,
Amidst the brutal financial and political turbulences shaking our region and the world today, I would like to stress that our banking sector is performing particularly well, and is showing an impressive resilience to the surrounding turmoil. A continuous dialogue and consultation between the regulator and the industry, helped create a strong and stable banking sector in Lebanon, one which provides economic and social stability to the country, in times of constant challenges, and revolving national and international crisis.
Moreover, we have always in Lebanon adopted and complied with the best international norms and standards, in terms of risk management, capital allocation, Know Your Customer, and fighting money laundering. We are a small economy widely open to global markets, and are committed to applying international rules and regulations. This was, even before the ratification of the Law 318 on Fighting Money Laundering in 2001, and shall always be, our constant vision. I would like to emphasize that our Lebanese banks allocate the necessary funding for AML software installation and provide their departments with the qualified human resources to carry out their duties to mitigate inherent risks, when dealing with their multi-facet customers. These risks facing us are great, serious and diverse, and the protection of our banks and our society takes priority over anything else.
In all cases, money laundering is not just about financial crime, it is about all crime, and is the major threats to the well-being of any society. All over the world, money laundering remains a big problem today, not just for governments, but also for the banking industry and for the society as a whole. It is therefore normal that this issue is a real concern to our banking community.
We, at the Association of Banks in Lebanon place a great deal of importance and spare no effort to train and develop our human capital in view of bringing their skills and competencies up to international levels. Today, Lebanese bankers occupy key positions in banks worldwide and are sought after for their sophisticated know-how, culture, dynamism, ethics and discretion. As a matter of fact, Lebanese banks are directly present in major cities of the world, namely in 31 Arab and international countries, and deal with a network of correspondents banks throughout 111 cities across the globe. The banking industry has recently witnessed a consolidation and a diversification of shareholders’ structure, which attracted large international and Arab investors, such as the IFC and others.
In terms of AML-CFT, and due to the growing complexity and sophistication of these criminal activities around the world, the current situation clearly underscores the need to conduct an ongoing dialogue, geared by more international coordination and collaboration.
Mrs Ambassador,
In this context, our meeting here today, is to stress that the (Lebanese Canadian Bank) case is an isolated one in the Lebanese Banking Sector. We are not currently in a position to know exactly what happened, since the case is still under investigation by the relevant authorities. However, there has been a campaign, recently launched by local and foreign press, as well as some local politicians against the Lebanese banking sector, promoting the existence of another list of accused banks in the pipeline of the US authorities. Knowing that the Governor of Central Bank of Lebanon, following his meetings with the US Treasury in Washington, disclosed the non-existence of such targeting against Lebanese banks, and knowing also that our Lebanese banking sector spares no efforts in implementing international standards, domestic controls and suitable enforcement mechanisms. We are resolute on keeping our markets “clean” and highly defensive against illicit cash. We are open to any collaboration to reach this goal.
To conclude,
Mrs Amabassador, you agree with us that any unjust rumors, falsely attributed to the US Treasury against our banking sector, will directly affect the reputation of Lebanese banks and their health, causing a real threat to the stability of the system, one which will be aggravated by the current domestic and regional conjuncture. The Lebanese banking community wishes to have an official clarification from your side as to the truth of this matter. We appreciate your cooperation.
Thank you
