The U.S. Treasury's Office of Foreign Assets Control sanctioned Lebanon's Jammal Trust Bank SAL for allegedly facilitating banking activities for militant group Hezbollah, which the U.S. has designated as a terrorist organization.
The OFAC also sanctioned the Lebanese lender's local subsidiaries, Trust Insurance SAL, Trust Insurance Services SAL and Trust Insurance Co. SAL and said all four entities are further subject to secondary sanctions, pursuant to the Hezbollah financial sanctions regulations.
Jammal Trust Bank denied the OFAC's allegations and said it will appeal the enforcement agency's decision, adding that it will work closely with the Central Bank of Lebanon, the Special Investigation Commission and other authorities to clear its name.
Additionally, Riad Salamé, governor of the Lebanese central bank, told Reuters that the regulator would guarantee all legitimate deposits in the bank.
Meanwhile, Salim Sfeir, chairman of the Association of Banks in Lebanon and CEO of Bank of Beirut SAL, said Lebanon has received assurances from the U.S. that no other banks are on the sanctions list, according to the Aug. 30 report.
