Salameh: Lebanese Canadian Bank Abides by Laws, International Standards

Central Bank governor Riad Salameh said Friday “the Lebanese Canadian Bank abides by Lebanese laws and international standards,” a day after the Treasury Department accused it of laundering hundreds of millions of dollars in drug profits for a cocaine smuggling organization with ties to Hizbullah.

The bank “receives the absolute support of the Central Bank,” Salameh said.

"Management of this bank is highly professional and the bank has high liquidity reserves," he said. "We would like to reassure customers that their operations are safe."

Georges Zard Abou Jaoude, chairman and general manager of the Lebanese Canadian Bank told a Lebanese television network on Thursday, "All our books are open, with full transparency, whether for Lebanese monetary authorities represented by the anti-money laundering bureau or even American authorities."

He added that one individual named by the Treasury Department had not done any transactions in four years.

The Department and Drug Enforcement Administration announced Thursday that Lebanese Canadian Bank has been designated a "primary money laundering concern" for allegedly helping a Lebanese-based drug trafficking organization launder as much as $200 million a month in drug profits. The designation was made under the USA Patriot Act.

The agencies said the smuggling ring is run by alleged drug kingpin Ayman Joumaa and has provided financial support for Hizbullah, which the U.S. designated a terrorist organization in 2001.

As of 2009, the bank had assets of more than $5 billion, U.S. officials said.(Naharnet-AP)