ABL Convenes in Special Meeting over Hizbullah Reactions to U.S. Sanctions

The Association of Banks in Lebanon (ABL) is set to hold a special meeting on Saturday to discuss the U.S. law that targets the sources of funding of Hizbullah which triggered dismay among the party's officials.

The meeting will be chaired by the ABL chief Joseph Tarabay and comes after Hizbullah's Loyalty to the Resistance parliamentary bloc criticized the central bank for saying it would abide by a U.S. law that came into effect last month and which the party's lawmakers said violates Lebanon's sovereignty.

The bloc said Thursday that U.S. sanctions on banks that knowingly do business with Hizbullah could threaten Lebanon's financial sector, hinting that supporters may withdraw their money from local banks.

The statement came after a cabinet meeting Thursday in which officials discussed a decision by banks to shut down the accounts of at least two Hizbullah lawmakers, reports said.

The decision drew concerns of some cabinet members that the law could affect Hizbullah's large network of social, educational and health organizations, which regularly deal with the government and provide services to needy Lebanese, not just supporters.

Lebanon's central bank governor Riad Salameh has said that Lebanon will abide by the restrictions in the Hizbullah International Financing Prevention Act, which was signed into law in December.

The U.S. regulations say Washington will target those "knowingly facilitating a significant transaction or transactions for" Hizbullah or any individual, business or institution linked to the group.