UK Court Rules in Favor of Lebanese Bank over Transfers Abroad

Lebanese police stand outside a branch of BLOM Bank in Beirut, Lebanon November 1, 2019. (Reuters)
Lebanese police stand outside a branch of BLOM Bank in Beirut, Lebanon November 1, 2019. (Reuters)
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UK Court Rules in Favor of Lebanese Bank over Transfers Abroad

Lebanese police stand outside a branch of BLOM Bank in Beirut, Lebanon November 1, 2019. (Reuters)
Lebanese police stand outside a branch of BLOM Bank in Beirut, Lebanon November 1, 2019. (Reuters)

A British court ruled on Friday in favor of a Lebanese bank in a case brought by a depositor barred from transferring funds abroad because of capital controls in place since Lebanon's financial system collapsed in 2019.

The court ruled that BLOM Bank could be considered to have discharged its debt to the plaintiff, Bilal Khalifeh, by issuing a cheque in Lebanon.

Banks have imposed tight controls on accounts, including a de facto ban on transfers abroad and local withdrawals of dollar-denominated deposits in dollars, but the controls have been challenged in Lebanese and international courts.

Banks have sought to discharge dollar-denominated funds via banker's cheques which cannot be cashed out in dollars and are instead sold on the market at a discount of about three-quarters of their value.

The ruling by London's High Court of Justice, Queens Bench Division, said BLOM Bank was under no obligation to transfer some $1.4 million in Khalifeh's savings abroad and could be considered to have discharged his account via a cheque deposited with a notary.

"The debt due from the Bank was payable in Lebanon and... Mr Khalifeh had no contractual right to require the Bank to transfer funds abroad," it said.

Khalifeh told Reuters he would appeal the ruling.

In a separate case last month, a French court ordered Lebanon's Saradar Bank to pay $2.8 million to a client residing in France, saying payment via cheque in Lebanon was not valid.

In that case, the documents opening the account were signed by the plaintiff in Paris. Khalifeh did so in Lebanon.

"This judgement means that BLOM Bank can continue to treat all depositors equally in terms of international transfers and cash withdrawals, irrespective of the size of their deposits and their place of residency," BLOM Bank said in a statement.



Israel Media Report Accuses Troops of Indiscriminate Killing of Gaza Civilians

Israeli Prime Minister Benjamin Netanyahu (C) arrives at the Netzarim Corridor just south of Gaza City - AFP
Israeli Prime Minister Benjamin Netanyahu (C) arrives at the Netzarim Corridor just south of Gaza City - AFP
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Israel Media Report Accuses Troops of Indiscriminate Killing of Gaza Civilians

Israeli Prime Minister Benjamin Netanyahu (C) arrives at the Netzarim Corridor just south of Gaza City - AFP
Israeli Prime Minister Benjamin Netanyahu (C) arrives at the Netzarim Corridor just south of Gaza City - AFP

A leading Israeli newspaper, citing unnamed soldiers serving in Gaza, described indiscriminate killings of Palestinian civilians in the territory's Netzarim Corridor, prompting a firm rejection Friday from the military.

Haaretz, a left-leaning Israeli daily that has faced severe criticism from the country's right-wing government, quoted soldiers, career officers and reservists who said commanders were given unprecedented authority to operate in the Gaza Strip.

According to AFP, they alleged commanders had ordered or allowed the killing of unarmed women, children and men in the Netzarim Corridor, a seven-kilometre-wide (4.3-mile-wide) strip of land that cuts across Gaza from Israel to the Mediterranean, and which has been turned into a military zone.

The report quoted an officer who recalled an incident in which a commander had announced that 200 militants were killed, when actually "only 10 were confirmed as known Hamas operatives".

Soldiers meanwhile told Haaretz they received questionable orders to open fire on "anyone who enters" Netzarim.

"Anyone crossing the line is a terrorist -- no exceptions, no civilians. Everyone's a terrorist," a soldier quoted a battalion commander as saying.

The soldiers also described how division commanders received "expanded powers" allowing them to bomb buildings or launch airstrikes that previously required approval from the army's top echelons.

The allegations contained in the Haaretz report could not be independently verified.

In a statement to AFP, the military rejected the accusations.

"All activities and operations conducted by (Israeli army) forces in the Gaza Strip, including in the Netzarim Corridor, are carried out in accordance with structured combat procedures, plans and operational orders approved by the highest ranks in the (army)," it said.

- 'No innocents in Gaza' -

The military added that "all strikes in the area (of Netzarim) are conducted in accordance with the mandatory procedures and protocols, including targets that are struck in an urgent time frame due to essential operational circumstances where ground forces face immediate threats".

"Incidents that give rise to concerns of deviations from army orders or ethical standards are thoroughly examined and addressed."

Many soldiers who spoke to Haaretz pointed to a specific commander, Brigadier General Yehuda Vach, who last summer took charge of Division 252, which has been based in Netzarim.

One of the soldiers said of Vach -- who was born in the settlement of Kiryat Arba in the occupied West Bank -- that "his worldview and political positions were clearly driving his operational decisions".

Another soldier said Vach had declared "there are no innocents in Gaza".

The military told AFP that the "statements attributed to him... were not made by him".

"Any claim asserting otherwise is entirely baseless."

The Haaretz report said Israeli soldiers spoke to the newspaper so that the Israeli "people need to know how this war really looks like, and what serious acts some commanders and fighters are committing inside Gaza".

"They need to know the inhuman scenes we're witnessing".

Palestinian militant group Hamas, whose unprecedented October 7, 2023 attack on Israel sparked the current war, also reacted to the Haaretz report.

It said the testimonies offered "new evidence of unprecedented war crimes and full-fledged ethnic cleansing operations, carried out in an organised manner".

Hamas demanded that the United Nations and the International Court of Justice "document these testimonies and take the necessary steps to stop the ongoing genocide in the Gaza Strip".