Lebanon: Caught Between Banking Secrecy and International Guardianship

03 Apr 2023 Lebanon: Caught Between Banking Secrecy and International Guardianship
I was deeply distressed when the President the Arab-American Center in Washington, suggested to place Lebanon under UN trusteeship as a failed state in an article he recently published. But I was more concerned when I heard the statement of the Lebanese Deputy Prime Minister Mr. Saadeh Al Shami in an interview with a TV channel, stating that Lebanon will not be able to return all depositors money; a highly irresponsible statement from a supposedly responsible government official.
As a refugee who fled Palestine at the age of ten with my family to this beautiful land, Lebanon, from the Zionist aggression, I have a deep-rooted sense of loyalty and love for this country and its people. Hearing such news, also as a depositor myself,  moved me profoundly to support depositors’ legitimate claims for  their money, as I have been entrusted by numerous Lebanese entities to act on their behalf to recover losses of their assets that they have worked hard to make for years.
By virtue of my previous positions on the International Federation of Accountants Council (New York), the International Accounting Standards Board (London), as well as being the Chairman of the United Nations Committee on Standards and Reporting (New York) and the Arab Society of Certified Accountants (London), I am concerned with the current and future reputation of Lebanon and its noble people.
Considering that the contract between the contracting parties is legally binding, resolving the financial crisis in Lebanon and returning depositors' money requires the annulment of the Banking Secrecy Law. This will allow the judiciary to identify those responsible for seizing depositors’ money and returning it to them, thereby establishing due-process and justice, as well as restoring confidence in Lebanon as a state. Given that there are binding contracts between the banks and its depositors, the “haircut” and “capital control” absurd ideas are nothing but futile attempts that only reflect the unrealistic dreams of those introducing them.
In light of the above, I reiterate my full readiness to sue any party that infringes the rights of the depositors and I emphasize that there is no legal distinction between small and large depositors according to the law and the binding official contracts. No state has the right to annul any such agreements that have been made, and deposits must be repaid in full with the accrued interest.
Since individual depositors as well the Depositors' Outcry Association have entrusted me with their cause, which is also my cause, I will file a collective lawsuit against the current financial system in Lebanon, to redress the damage and return the money to their owners. The money did not evaporate into thin air. It was moved from one account to another.
I would like to note here with much appreciation the cooperation of the Minister of Displaced Affairs Mr. Issam Sharaf El-Din, who has taken efforts to support my mandate to lead this cause that includes more than 500,000 depositors within a legal framework. This demands the collection of frozen funds and their accumulated interest held in Lebanese banks for many years.
To ensure this is achieved through the long arm of international law, I have commissioned Talal Abu Ghazaleh Legal, as well as a team of lawyers in Lebanon, France, and Jordan at my own expense. They shall conduct the necessary studies to document the crimes committed against the depositors and shall take the case before international judicial bodies and human rights organizations.
The team of lawyers in charge has begun collecting information and documenting the human and social conditions of the victims, as well as documenting legal materials and international agreements. This includes the Genocide Convention, the Rome Convention, and the Convention against Corruption and Money Laundering, in order to specify the criminal activity in detail, including its legal description and what falls under it.
The team in charge will file a class action lawsuit in Lebanon, France, the United Nations, and any other concerned country as soon as the necessary documents are completed. These include charges of corruption, money laundering, and smuggling, in addition to considering it an international financial crime against humanity.