Bloomberg/Patrick Mouzawak

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Lebanon’s Jammal Trust Bank liquidates following US-blacklisting

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The Lebanese central bank said that Jammal Trust’s fixed assets and belongings are sufficient to cover its deposits and liabilities.

Thursday 19, September 2019 BY KUDAKWASHE MUZORIWA

Banque du Liban (BdL) has approved a request for self-liquidation by Jammal Trust Bank (JTB), the bank which was recently blacklisted by the US Treasury for allegedly facilitating banking for the Iran-backed Hezbollah movement.

In a statement, Jammal Trust said, “In light of the US Treasury's decision to list Jammal Trust Bank on the SDGT on 29 August 2019, despite its sound financial position confirmed in the reports of oversight commissioners and its full compliance with local and foreign banking rules and regulations, the Board of Directors had to take the decision of self-liquidation, under full coordination with the Central Bank of Lebanon.”

US Treasury described Jammal Trust as posing a direct threat to the integrity of the Lebanese financial system.

Riad Salameh, the Governor of BdL, said that all the depositors' funds would be secured on their due date and that the rights of Jammal Trust Bank's employees would be preserved.

Last month the central bank announced that it would probe the lender, which denied the US allegations.

TAGS : Banque du Liban, Jammal Trust Bank, US Treasury, self-liquidation, Riad Salameh

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