Will banking secrecy be lifted to investigate all financial crimes?

In light of the European investigation into the embezzlement and money laundering that Central Bank Governor Riad Salameh and others are alleged to have committed, the Lebanese ruling regime has adopted a policy of "holding its breath." Everyone is waiting for the results of the first round of the European investigators' mission in Beirut.

 

Several sources also noted that some of those in the regime depend on the "immunity" that French President Emmanuel Macron ensures for those in positions of authority.

To ensure that important financial, banking, political, and party names would not be included in the European financial investigation, high-level contacts between Beirut and Paris took place, according to these sources, under the pretext of "preventing the shaking of Lebanon's fragile stability and deepening the gap of collapse."

However, regardless of the final results that the European judicial investigation will reach, some sources confirmed that at the forefront of the preliminary results is "the demolition of the wall of banking secrecy" so that Lebanon will witness "for the first time in its history the complete lifting of banking secrecy under the requirements of the European investigation into the part related to money laundering."

These sources indicated that "the Lebanese state is obligated, according to the United Nations Convention against Corruption (especially Article 46 of it, which Lebanon ratified in 2009), to provide the largest possible amount of mutual legal assistance during investigations, prosecutions, and criminal legal procedures, and any refusal must be justified under a few exceptions strictly interpreted."

In this context, the sources added that Lebanon must put in place appropriate mechanisms aimed at overcoming any obstacle related to banking secrecy, as in the UN treaty, articles and paragraphs stipulate preventing Lebanon from invoking any bank secrecy or refusal to comply with the requests of the European judicial authorities in this regard.

Additionally, it said that banks are also obligated to submit documents related to the bank accounts targeted for investigation, noting that the European investigators have several observations on obstructing the link between the investigations of Judge Jean Tannous (with Salameh and others) in the context of requests for mutual legal cooperation.

It is noteworthy that the recent amendment to the Banking Secrecy Law kept some "choking necks" in against requests to lift secrecy, but this is only valid locally, provided that any such barrier falls to European investigators in a precedent that Lebanon has not seen since the Bank Secrecy Law's adoption in 1956.

Furthermore, some sources stressed that "the fall of the wall of secrecy" means a lot later if the accusations of embezzlement, laundering, and tax evasion are confirmed, which may open the door wide for human rights and civil activists to file lawsuits against corrupt politicians in European judicial forums as they did against Salameh.

Regarding the presidential file, and with Parliament Speaker Nabih Berri's resumption of calls for "Thursday sessions," the political horizon remained blocked in front of ending the presidential vacancy under the March 8 forces' imposition of their agenda to disrupt the presidential elections until the election of a president with whom Hezbollah would be protected both internally.

However, the meeting of the political body of the Free Patriotic Movement (FPM) held by its leader Gerban Bassil failed to conduct any result, according to well-informed sources.

Additionally, it stated that none of the presidential candidates were chosen during the meeting.

The same sources revealed that the discussions between the FPM members were divided between two positions: 

The first excluded anyone outside the FPM from running for president. People with this stance, therefore, question why the FPM leader shouldn't be chosen if there is a chance to elect someone within the movement. But why would another candidate from the FPM ranks who reassures allies and does not rile up opponents be excluded if the conditions of his election were not secured?

The second showed openness regarding naming a presidential candidate who does not belong to FPM, but the majority rejected it. So all the names put forward for nomination from outside FPM were dropped, and the situation remained as it was.