Investors pay high price as judges target Lebanese banks

A woman walks past a branch of Creditbank in Beirut, Lebanon March 17, 2022. (Reuters)
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Updated 17 March 2022
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Investors pay high price as judges target Lebanese banks

  • Banking sector hits out at ‘arbitrary measures’ after Creditbank boss hit with travel ban
  • Prime minister voices concern over ‘irrational judicial proceedings’

BEIRUT: A Lebanese judge has issued a travel ban against Creditbank Chairman Tarek Khalife and frozen the bank’s assets, including properties and vehicles, as part of an investigation into alleged money laundering.

Mount Lebanon Public Prosecutor Judge Ghada Aoun issued the order after activists filed a lawsuit against several Lebanese banks. 

Creditbank is the sixth lender Aoun has taken action against after Bank of Beirut, SGBL, Bankmed, Bank Audi and Blom Bank.

It is the second judicial measure taken within 24 hours against banks in Lebanon.

Earlier, Judge Miriana Anani, head of the Enforcement Department in Beirut, seized all the shares, properties and assets of one of Lebanon’s largest banks, Fransabank.

The assets will be auctioned if the bank fails to return a deposit belonging to Ayad Garbawy Ibrahim, an Egyptian national who is among hundreds of depositors unable to access his funds at Fransabank.

Ibrahim is taking legal action against the bank to recover the $35,000 he claims is owing.

Judge Aoun on Thursday also issued an arrest warrant for Raja Salameh, brother of the governor of the central bank, Riad Salameh, following an investigation.

The Pioneers of Truth activist group said that Salameh had been arrested on the basis of a complaint it filed 10 days ago accusing him of money laundering through fake companies.

The judicial proceedings have angered the banking sector, and the Association of Banks is expected to discuss strike action at a general assembly on Friday.

Prime Minister Najib Mikati described the judges’ decisions as “arbitrary and irrational judicial proceedings.”

“With all due respect to the judiciary, there is a general impression that some of what is happening does not conform with the judicial norms,” he said.

“The rights of depositors are our priority. However, the exaggerated way through which the judicial rights and issues related to banks are being tackled is dangerous and could undermine the remaining confidence in the banking system.”

Mikati said: “The depositors will, once again, pay the price, and I am afraid things will escalate if defects are not addressed.”

Lebanon’s financial crisis is worsening in the absence of any reforms to alleviate it.

Banks have continued to seize the funds of dollar depositors and prevent transfers, and Lebanon has stopped paying all maturing Eurobonds.

However, the Association of Banks said that it rejects “unlawful actions and abusive practices against them.”

The association warned that “continued arbitrary and illegal measures against banks are damaging the banking sector and the interests of depositors are most adversely affected, especially in the light of the negative repercussions of their relations with foreign correspondent banks.”

It described these measures as “the blow to the remainder of the Lebanese economy.”

Experts say that the seizure of Fransabank assets could have repercussions for all banks.

“Unfortunately, the victim of what is happening is the depositor,“ financial expert Dr. Walid Abou Sleiman told Arab News.

The judicial decisions, if implemented by banks, “will result in the confiscation of the depositors’ funds allowed by the bank,” he added.

He said that the banking supervisory committee must act fairly with depositors, and banks must address depositors and reassure them regarding their deposits.

Abou Sleiman called for an end to “false promises and vague slogans,” adding: “Deposits are confiscated, capital control has not been approved and withdrawal funds from IMF are being obfuscated.”

Charles Arbid, head of Lebanon’s Economic and Social Council, supported the call for banks to “open up to their depositors regarding their deposits and develop a road map for their return to be implemented.”

He said the silence of the banks was unacceptable. “Obstinacy is hurtful and irresponsible. A just and balanced understanding is required.”

In its statement, the Association of Depositors said that “banks will not return the deposits in friendly ways and, accordingly, there is no choice but to turn to the judiciary and seize the property of banks that have been humiliating and robbing depositors for two years.”


Oman announces US-Houthi ceasefire deal

A US F/A-18 Super Hornet attack fighter jet takes off from the US Navy’s Nimitz-class USS Harry S. Truman aircraft carrier.
Updated 11 min 7 sec ago
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Oman announces US-Houthi ceasefire deal

  • “They said please don’t bomb us any more and we’re not going to attack your ships,” Trump said
  • There was no immediate response from the Houthis

WASHINGTON: The United States and Yemen’s Houthis have reached a ceasefire agreement, mediator Oman announced Tuesday, saying the deal would ensure “freedom of navigation” in the Red Sea where the militia has attacked shipping.
“Following recent discussions and contacts... with the aim of de-escalation, efforts have resulted in a ceasefire agreement between the two sides,” said Omani Foreign Minister Badr Albusaidi in a statement posted online, adding that “neither side will target the other... ensuring freedom of navigation and the smooth flow of international commercial shipping” in the Red Sea.

Earlier on Tuesday, President Donald Trump said that the US will stop bombing the Houthis in Yemen after the Iran-aligned group agreed to stop interrupting important shipping lanes in the Middle East.
In an Oval Office meeting with Canadian Prime Minister Mark Carney, Trump announced the Houthis have said that they no longer want to fight but did not elaborate on the message.
“They said please don’t bomb us any more and we’re not going to attack your ships,” Trump said.
The Houthis have been firing at Israel and at shipping in the Red Sea since Israel began its military offensive against Hamas in Gaza after the Palestinian militant group’s deadly attack on Israel on October 7, 2023.
The US president said Washington will take the Houthis’ word that they would not be blowing up ships any longer.
Tensions have been high since the Gaza war began, but have risen further since a Houthi missile landed near Israel’s Ben Gurion Airport on Sunday, prompting Israeli airstrikes on Yemen’s Hodeidah port on Monday.
The Israeli military carried out an airstrike on Yemen’s main airport in Sanaa on Tuesday, its second attack in two days on the Houthis after a surge in tensions between the group and Israel.


The bodies of a Belgian mother and her son were recovered in southern Jordan after flash flooding

Updated 06 May 2025
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The bodies of a Belgian mother and her son were recovered in southern Jordan after flash flooding

  • The mother and children had been part of a group of 18 tourists
  • Fourteen tourists, all Czechs, were rescued on Sunday

AMMAN: Search and rescue teams recovered the bodies of a Belgian mother and her son on Monday in Jordan, police said a day after the woman and her three children were reported missing in flash flooding. The other two children were found alive.
Sunday’s flooding in southern Jordan also led to the evacuation of hundreds of tourists from the Petra archaeological site, the country’s main tourist attraction.


The mother and children had been part of a group of 18 tourists who had been on an adventure trip in Wadi Al-Nakhil when they were caught up in the flash flood, Ma’an district local governor Hassan Al-Jabour told state media broadcaster Al-Mamlaka TV.
Fourteen tourists, all Czechs, were rescued on Sunday. Rescue crews located two of the children alive late Sunday, Al-Jabour said. The search and rescue operation was suspended at about 2 a.m. because of the complicated weather conditions and terrain. The bodies of the woman and her son were found Monday morning after the search resumed, he said.
Further details about the family and the ages of the children weren’t immediately available.
Jordan often experiences flash flooding as heavy seasonal rains send torrents of water through dry desert valleys. At least three people died in 2021 when floodwaters swept away their car, while more than 30 people in the Dead Sea region and other parts of Jordan were killed in flash flooding in 2018.


UAE president stresses regional peace during meeting with Turkish foreign minister

Updated 06 May 2025
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UAE president stresses regional peace during meeting with Turkish foreign minister

  • Leaders examined the strategic relationship between Ankara and Abu Dhabi

LONDON: UAE President Sheikh Mohamed bin Zayed Al-Nahyan met with Turkish Foreign Minister Hakan Fidan at the Qasr Al-Shati palace in Abu Dhabi on Tuesday.

They examined the strategic relationship between Ankara and Abu Dhabi, seeking ways to enhance it according to their mutual interests, the Emirates News Agency reported.

Sheikh Mohamed and Fidan discussed regional and international issues, highlighting developments in the Middle East. They stressed the necessity of fostering regional peace and stability in a way that benefits all nations.

The meeting was attended by several senior officials, including Sheikh Hamdan bin Mohamed bin Zayed Al-Nahyan, the deputy chairman of the Presidential Court for Special Affairs; Sheikh Mohamed bin Hamad bin Tahnoun Al-Nahyan, the adviser to the UAE president; Ali bin Hammad Al-Shamsi, the secretary-general of the Supreme Council for National Security; and Khalifa Shaheen Al-Marar, the minister of state.


Emir of Qatar discusses ties in phone call with India PM Modi

Updated 06 May 2025
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Emir of Qatar discusses ties in phone call with India PM Modi

  • The leaders shared perspectives on regional and international developments of mutual concern

LONDON: The Emir of Qatar Sheikh Tamim bin Hamad Al-Thani discussed ties with Indian Prime Minister Narendra Modi during a phone call on Tuesday.

The leaders discussed ways to strengthen the relationship between Doha and New Delhi. They also shared perspectives on regional and international developments of mutual concern, according to the Qatar News Agency.

Sheikh Tamim visited India last February to enhance bilateral collaboration between the two countries in areas such as trade, investment, energy, and finance.


UN urges probe into 'disturbing' video of abducted Libyan MP

Updated 06 May 2025
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UN urges probe into 'disturbing' video of abducted Libyan MP

  • UNSMIL said it was “alarmed” by Ibrahim el-Dirsi’s “enforced disappearance”
  • It described circulating images of his detention as “disturbing“

TRIPOLI: The UN mission in Libya on Tuesday called for an independent investigation into images of an abducted member of the country’s eastern-based parliament that showed signs of torture.
In a statement, UNSMIL said it was “alarmed” by Ibrahim el-Dirsi’s “enforced disappearance” and described circulating images of his detention as “disturbing.”
Dirsi, a member of the Libyan house of representatives, was kidnapped in May 2024 in Benghazi, Libya’s second largest city which he represents.
The North African country has been mired in unrest since the 2011 NATO-backed uprising that toppled dictator Muammar Qaddafi.
It remains split between the UN-recognized Government of National Unity (GNU) in Tripoli, and a rival eastern administration backed by military strongman Khalifa Haftar.
On Monday, Libya’s Al-Ahrar TV aired photos and a video showing Dirsi, apparently in a prison cell, wearing only shorts and chained with a padlock around his neck.
UNSMIL said it had asked UN digital forensic experts to verify the footage’s authenticity.
Tripoli’s GNU described the conditions in the images as “degrading, shocking and inhumane.”
It criticized the “so-called General Command,” referring to Haftar’s forces, after the video appeared to show Dirsi pleading for forgiveness.
The pro-Haftar Al-Masar TV channel quoted lawmakers as saying the images were “fabricated” and “produced using artificial intelligence.”
The eastern-based interior ministry blamed “unidentified criminals affiliated with a gang,” saying the case was under “thorough investigation.”
UNSMIL also condemned “widespread and systemic abuses in detention facilities by law enforcement and security actors in Benghazi, Tripoli, Sabha, and other locations across Libya.”
It said “arbitrary detentions, abductions, torture, enforced disappearances and deaths in custody are serious human rights violations and may constitute international crimes that can be prosecuted by the International Criminal Court.”
“Libyan authorities must ensure these practices immediately cease and that perpetrators are brought to justice,” the statement added.
In 2019, Siham Sergewa, another representative in Benghazi, was abducted from her home shortly after criticizing Haftar on television. She remains missing.