On October 18, Lebanon’s parliament voted on a series of amendments to repeal the banking secrecy law, a key pre-condition required by the International Monetary Fund (IMF) before signing a final deal with Lebanon. This is the second round of amendments since the previous draft was refused by the IMF. In fact, most local pundits argue that removing the banking secrecy law will enable Lebanon to recover billions of dollars in stolen funds, allegedly transferred abroad after 2019—following the banking crisis. 

LIMS explained that historically, Lebanon boasted a strict banking secrecy law that attracted large funds from the Middle East. Those funds were seeking refuge away from tyrannical regimes. The current financial crisis and economic crises highlighted the size of corruption in public administration in Lebanon, that can potentially hide behind the bank secrecy shield. However, LIMS differentiated between (1) removing banking secrecy, (2) identifying stolen funds and (3) uncovering the money transferred abroad after 2019. Those are three different operations that pundits often confuse. Money generated from illicit activities may have left Lebanon before 2019 and money transferred after 2019 may well be legal money. Removing bank secrecy does not recover either. It would rather help regain some transparency in the banking system and facilitate international integration.

LIMS Media Interviews: 

• Did Banking Secrecy Law Come To Consolidate Political Power? October 15, 2022: RLL Radio Interview AR 
• Lifting Banking Secrecy: Most Prominent Conditions Of IMF, October 18, 2022: NBN, TV Interview AR