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Lebanon's Central Bank stresses implementing U.S. sanctions against Hezbollah

Xinhua, May 18, 2016 Adjust font size:

Lebanon's Central Bank Governor Riad Salameh stressed Tuesday that Lebanese banks must "offer justifications" and consult with the Central Bank before suspending the accounts suspected of violating the anti-Hezbollah U.S. sanctions law.

"The law issued in the United States is an American law that is supposed to be implemented globally and in Lebanon, and, accordingly, Memo 137 that was issued by the Central Bank on May 3, 2016 was a Lebanese legal obligation," Salameh said in a statement.

"Article 70 of the Monetary and Credit Act requires the Central Bank to ensure credit stability which cannot be secured without implementing this U.S. law. Memo 137 confirms the compatibility of the work of banks in Lebanon with the international obligations," Salalmeh added.

He also noted that the Central Bank's measures aim at "achieving the interest of Lebanon and its economy, for the sake of the Lebanese and their savings."

Salameh had said the bank would abide by the restrictions in the Hezbollah International Financing Prevention Act, which was signed into law in December.

Lebanese officials and lawyers said the impact of the law on the country's economy remains unclear.

The U.S. treasury officials are expected in Lebanon later this month to discuss the law's implementation. Endit