The Association of Banks (AOB) has raised concerns on Tuesday about the “danger” of the Prosecution’s new measures against some banks because they “alter the legal classification of an alleged crime in order to initiate proceedings against these banks.”
The AOB’s reaction comes in response to the recent charges of “illicit enrichment” filed earlier by Attorney General at the Court of Appeal of Mount Lebanon, Ghada Aoun, against the Governor of the Central Bank of Lebanon, Riad Salamé, his wife Nada, and actress Stéphanie Saliba. The judge has also filed money laundering charges against the Lebanon and Gulf Bank.
The Association explained in a press release that banking institutions comply with the current laws governing their activities (306/2022), which are also binding for the prosecuting authorities.
It emphasized that “the fact that the Prosecution bypasses these laws and alters a criminal legal classification in order to initiate proceedings (against banks) for alleged money laundering offenses will exacerbate the damage inflicted on the banking sector since the beginning of the crisis in 2020 and the payment default unilaterally decided by the State without prior consultations with creditors.”
The AOB’s pointed out that “these erroneous classifications will compel foreign correspondent banks to suspend their activities with Lebanese institutions until acquittal is pronounced.”
Reminding that “the judicial process is likely to take several years,” it asserted that “the presumption of guilt will give a fatal blow to the banking sector.”
It is worth noting that Ms. Aoun, who had resumed her relentless campaign against the Governor and the banking sector –, which was in complete contradiction with the principles underlying a judge’s work – was dismissed from the judiciary on May 4 as a result of her behavior. She has appealed this decision to the Higher Disciplinary Council, which allows her to continue the proceedings she is leading, pending a final decision.
