May
18,2015
Money Laundering!
How is it spread in Lebanon
Money Laundering is actually one of the most serious
financial problems which are plaguing the International economy. It influences
the political stage and affects the stability and security of nations over the
world.
How is Lebanon dealing with this terrible threat to its
financial security? Have we issued proper legislation in order to fight such
illegal activities?
What is the leading role of the Central Bank of Lebanon? Where
is the position of the Association of Lebanese banks?
In the course of this presentation, we will try to enlighten
some sides of this thorny challenge and dispel, as much as possible, sources of
fear and growing concerns.
Law no. 318, April 20 - 2011
Fighting Money Laundering
The Lebanese authorities proved a high level of awareness and
vigilance against illicit transfers or suspicious deposits in bank accounts.
Earlier than the Middle East’s states, Lebanon issued in 2001 the anti-Money
Laundering Law, which defines this case in its Article 2 by the following
clauses:
Money
Laundering is any act committed with the purpose of:
1-
Concealing the real source
of illicit funds, or giving by any means, a false justification about the said
source.
2-
Transferring or
substituting funds known to be illegal, for the purpose of concealing or
disguising their source, or helping a person involved in the offence to dodge
responsibility.
3-
Acquiring or holding
illicit funds, using or investing such funds in purchasing movable or immovable
assets, or in carrying out financial operations, while being aware of the
illicit nature of these funds.
A few years ago, waves of rumors from American sources had
shocked the Lebanese public opinion as well as the financial and political circles of the
country. The U.S. Treasury Department had designated two Lebanese money
exchange firms as a “primary money laundering concern”, alleging the groups may
be laundering millions of dollars of narcotics profits and funding the money to
armed organizations in Lebanon .
The Central Bank Governor’s Clarifications
The Daily Star
newspaper published on March 11, 2015 an article in which the Lebanese
financial circles were pleased to listen to the Central Bank Governor, Riad
Salemeh, dismissing allegations of money laundering activities in Lebanon as
nothing more than psychological warfare against the banking sector. “I totally
refuse these allegations. If anyone has information then the Lebanese Law
allows him to provide this information to the Special Investigation Commission,
which will conduct an investigation. Any violation of the Lebanese Law will be
punished accordingly. These reports are part of psychological warfare against
Lebanon because its banking and financial sectors are vital in Lebanese life”(Daily
Star,2015,p.5)
Riad Salemeh, added,“….coordination
with Americans, Europeans and Arabs in the fight against money laundering and
terrorist funding is continuing” (Daily Star,2015,p.5)
For more
precaution, banks in Lebanon are obligated by law to freeze or reject the
account of any individual or group that is mentioned on the U.S. and European
blacklists.
The Association of banks in Lebanon called on Parliament to
ratify three draft laws to combat money laundering that the Cabinet already
approved three years ago. Lebanon
also created the SIC ten years ago to investigate any complaint of suspicious
money laundering, terrorist funding and financial embezzlement. In 2013, the
SIC said it had received 301 cases, 189 of which came from local sources and
112 from foreign sources. Out of the 301 cases, 255 were investigated, 17 saw
banking secrecy lifted and 46 remain pending! (Daily Star,2015)
Finally in 2014, it was regrettable to be informed by spread
news that more than 1000 federal agents raided in Los Angeles ’ district and seized $90 million,
most of it in bulk cash from the Sinaloa Cartel. Authorities claim it was the
biggest money seizure in U.S.
history.
Rather than weird, it is really funny to be first suspected,
than accused by a side which is the money laundering’s stadium number one in
the world. The part of the joke is to see a great country drowning in its huge
problems of money laundering, and appearing always as the guide of the world!
I would never mistake in comparing Lebanon with the U.S.
which is the first superpower in the world, but I am fully confident that my country
is blessed by having its brilliant and successful Central Bank Governor, Riad
Salameh, the father of the Lebanese pound, and our national protector in front
of malicious interferences in our financial markets.
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