Bank of Lebanon calls on local banks to implement US ban on Hezbollah

Lebanon’s Central Bank Governor, Riad Salameh said applying the US ban against Hezbollah is necessary to stabilize the Lebanese banks.

Salameh said in a statement Tuesday that “the Hezbollah International Financing Prevention Act is applied everywhere; therefore the Central Bank of Lebanon’s decree issued on May, 3 was a legal obligation.”

“The decision aims to relax corresponding banks and affirm the Lebanese banking sector respect and adherence to international regulations” the statement said.

“Otherwise, our banking sector will be isolated from the world” it added.

US President Barack Obama signed on 18 December 2015 the Hezbollah International Financing Prevention Act which stipulates that Washington will target those “knowingly facilitating a significant transaction or transactions for” Hezbollah or any individual, business or institution linked to the group.

Hezbollah slammed the Bank’s decision last week saying it opens the door for a local war and would plunge the country towards bankruptcy.