Financial oversight: BDL investigates suspected embezzlement in the banking sector

Report by Bassam Abou Zeid, English adaptation by Yasmine Jaroudi

The Lebanese Banking Control Commission and the Special Investigation Commission at Banque du Liban (BDL) revealed suspicions of embezzlement of funds belonging to depositors at Credit Bank.

To verify these suspicions, BDL requested documents from the management of Credit Bank. 

However, the bank's management hesitated, later revealing an attempt to forge some documents in an effort to dispel suspicions of embezzlement.

Consequently, BDL appointed an interim manager for the bank, former Deputy Governor Mohammad Baassiri. 

In coordination with the acting BDL governor, Wassim Mansouri, Baassiri is overseeing the investigation into the bank's documents, which revealed suspicions of embezzlement amounting to tens of millions of dollars.

As a result, BDL froze the accounts of the former chairman of the board of directors of Credit Bank, Tarek Khalifeh, his family members, and the bank's general manager, Naila Zeidan.

Information suggests that the suspects are required to return the funds immediately or face legal action by BDL before the judiciary. All information and evidence related to this case are now in the hands of the Public Prosecution, which may take automatic action.

In another banking case, a dispute arose between MEAB Bank and one of its depositors, who accused the bank of money laundering and circumventing US sanctions. The Public Prosecution in Beirut filed charges against the bank and several individuals, including Chairman of the Board Ali Kassem Hjeij.

MEAB Bank described the allegations as false, affirming its adherence to all banking principles. It stated that its local and international operations are transparent and free from any wrongdoing. 

The bank revealed that due to a demand from one of its clients to settle a due debt and initiate seizure procedures, this individual filed a lawsuit that investigations proved to be unfounded. 

Therefore, MEAB Bank considered the lawsuit riddled with blatant legal inaccuracies.

On its part, BDL confirmed that it has no violations related to MEAB Bank and has not received any audits or requests in this regard.