Banks Warn against Lebanon 'Isolation'

Lebanon’s Bank Audi is one of the banks charged by Judge Ghada Aoun (AP)
Lebanon’s Bank Audi is one of the banks charged by Judge Ghada Aoun (AP)
TT
20

Banks Warn against Lebanon 'Isolation'

Lebanon’s Bank Audi is one of the banks charged by Judge Ghada Aoun (AP)
Lebanon’s Bank Audi is one of the banks charged by Judge Ghada Aoun (AP)

Banks in Lebanon warned of the “gravity” of judicial accusations leveled against a number of them for “money laundering” and said that this will have repercussions on banking transactions.

In a first, a new lawsuit affected an Arab bank operating in Lebanon, which is the National Bank of Kuwait (NBK).

Mount Lebanon Public Prosecutor Judge Ghada Aoun charged two senior bankers from Bank Audi and Audi Group with money laundering for failing to lift banking secrecy on the accounts of senior figures at the firm.

The two bankers are Bank Audi Group CEO Samir Hanna, and Deputy Group CEO Tamer Ghazaleh.

Aoun’s move was based on a complaint filed by civil society group The People Want to Reform the System against banks “breach of trust and fraud against depositors,” as well as “misuse of public funds.”

Aoun called on several banks to lift banking secrecy from the chairmen and members of their boards of directors, supervisory commissioners, and auditors, under penalty of being prosecuted for the crime of money laundering.

The Association of Banks in Lebanon (ABL) had issued a short statement warning against Aoun’s decision.

The ABL said the move may push major international banks to completely stop their dealings with Lebanon by closing the accounts of the Lebanese banks with them.

“Regret will not work if Lebanon is financially isolated from the world,” warned the association.

These accusations mean closing Lebanon’s financial outlets abroad, as correspondent banks can freeze Lebanese financial operations as a precaution due to filed lawsuits, banking sources explained to Asharq Al-Awsat.

“This means that no money transfers from Lebanon will be received by correspondent banks abroad,” sources added.

The move was described as “vengeful” by the ABL.

“Aoun’s move could transform the economy into a cash economy, which threatens, at a later stage, local money transfer companies as well,” banking sources warned.

The People Want to Reform the System said that BLOM Bank and Credit Libanais Bank, going against the ABL, had cooperated with Aoun’s request so far.

As for the lawsuit against NBK, a banking official told Asharq Al-Awsat that Aoun’s decision will be received as a negative sign by the Arab bank.

According to the official, this comes to worsen a decade-old trend of diminishing activity by foreign banks in Lebanon.

An indefinite strike by banks was announced last week following a general meeting of the ABL, although ATMs have remained open.



Sudan Lashes Out at Kenya's 'Hostile' Support for Rival Govt

Sudanese attend a protest in support of the army in the eastern city of Gedaref on February 22, 2025. (AFP)
Sudanese attend a protest in support of the army in the eastern city of Gedaref on February 22, 2025. (AFP)
TT
20

Sudan Lashes Out at Kenya's 'Hostile' Support for Rival Govt

Sudanese attend a protest in support of the army in the eastern city of Gedaref on February 22, 2025. (AFP)
Sudanese attend a protest in support of the army in the eastern city of Gedaref on February 22, 2025. (AFP)

Sudan's army-aligned administration lashed out Monday at what it called Kenya's "irresponsible and hostile" support for efforts by Khartoum's paramilitary rivals to form a parallel government.

Since April 2023, army chief Abdel Fattah al-Burhan and paramilitary Rapid Support Forces (RSF) commander Mohamed Hamdan Daglo, once allies, have been locked in a power struggle that has dragged the country into war.

Late Saturday, the RSF and a coalition of political and armed groups signed in Nairobi a charter that would pave the way for a "peace and unity" government in rebel-held areas, with Kenya's foreign minister later saying the proposed administration would restore "democratic governance" in Sudan.

Sudan's foreign ministry condemned the "dangerous precedent" on Monday, saying that "in a grave threat to regional security and peace, the Kenyan leadership has adopted the parallel government that the genocidal militia and its followers intend to declare in some of the remaining pockets under their control".

The government, it added, would take "the necessary steps to respond to this irresponsible and hostile behavior".

Those steps appeared to be taking shape Monday, with foreign ministry undersecretary Hussein Al-Amin Al-Fadil telling a press conference in Port Sudan that "measures against Kenya are escalating, and there are arrangements for economic measures, including a ban on importing Kenyan products".

He also said Sudan was in the process of withdrawing its ambassador from Nairobi and would file a complaint against Kenya through regional and international channels.

Among the signatories of the charter was a faction of the Sudan People's Liberation Movement-North led by Abdelaziz al-Hilu, which controls parts of the southern states of South Kordofan and Blue Nile.

The United Nations warned that the signing of the charter would "increase the fragmentation" of the war-torn country.

But in a post on X on Sunday, Kenyan Foreign Minister Musalia Mudavadi called the charter "a peace agreement", describing the proposed administration as a "a unity government" that would restore "peace, stability, and democratic governance in Sudan".

In its statement, Khartoum accused Nairobi of creating a "false facade for the militia to directly obtain weapons", while "relieving regional sponsors of some embarrassment".

The foreign ministry said that this "would expand the scope of war and prolong its duration" and warned of potential damage to bilateral ties with Kenya.

Fadil said Monday that Kenyan President William Ruto "has known personal interests with the militia leader and its sponsors, and is betting on losing cards".

Saturday's signing of the charter comes as the army and its allied factions are making advances against the RSF in the capital Khartoum and in central Sudan.

The war in Sudan, which has claimed tens of thousands of lives, erupted after a rift emerged between Burhan and Daglo over the future structure of the government.

The war has triggered the world's largest displacement and hunger crisis.

Both warring sides face accusations of committing grave atrocities against civilians, with their leaders sanctioned by the US.