Lebanon Allows Liquidation of Bank U.S. Blacklisted Over Hezbollah

(Bloomberg) -- Lebanon’s central bank approved a request for self-liquidation by Jammal Trust Bank, recently blacklisted by the U.S. for facilitating banking for the Iran-backed Hezbollah movement.

The Banque Du Liban said in a statement that Jammal Trust’s fixed assets and belongings are sufficient to cover its deposits and liabilities. Governor Riad Salameh said deposits will be guaranteed and will be paid according to their maturities.

Salameh said last month that the central bank would probe the lender, which denied the U.S. allegations.

U.S. Treasury Undersecretary for Terrorism and Financial Intelligence Sigal Mandelker described Jammal Trust as posing a “direct threat to the integrity of the Lebanese financial system.”

The U.S. has targeted Hezbollah, a militant Iranian proxy group based in Lebanon, as part of its offensive to isolate and weaken Tehran, primarily by imposing sanctions on its oil critical exports.

To contact the reporter on this story: Dana Khraiche in Beirut at dkhraiche@bloomberg.net

To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net, Mark Williams

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