U.S. Ties Lebanese Bank to Money Laundering, Hizbullah
The U.S. has accused the Beirut-based Lebanese Canadian Bank of laundering money for alleged cocaine trafficker Ayman Joumaa, and linked Hizbullah to the bank's illegal activities.
The U.S. Treasury said it would move to prohibit U.S. financial institutions from working with the bank, which it said was tied to Joumaa's international syndicate that laundered "hundreds of millions of dollars monthly" in cash from the drugs trade.
"Drug kingpin Ayman Joumaa and his Lebanon-based drug trafficking and money laundering network, along with several other individuals, have used LCB to launder narcotics proceeds -- as much as $200 million per month-- as part of this international money laundering network," the Treasury said in a statement.
It said the bank laundered money via the global trade in consumer goods as well as U.S. used-car dealerships.
"At least one of the individuals involved in this global drug trafficking and money laundering network has worked directly with LCB managers to conduct his transactions," it said.
The statement said Washington had information that Hizbullah, which the U.S. has branded a "terrorist" group, "derived financial support" from Joumaa's network -- which spans Latin America, West Africa, Europe and the Middle East.
It linked Hizbullah to the bank inside Lebanon as well as in Iran and in Africa. An LCB subsidiary in Gambia, Prime Bank, "is partially owned by a Lebanese individual known to be a supporter of Hizbullah," the Treasury said.
Later Thursday, the Lebanese Canadian Bank said in a statement it "denies knowledge of any involvement in any manner whatsoever in illicit transactions or wrong doing" and "regrets the information reported by international and domestic news agencies" about the bank's links.
The statement said the bank "is committed to fully cooperate and coordinate with the relevant regulatory authorities in an effort to demonstrate the integrity and transparency of its operations."
The Treasury moves came as Hizbullah-backed prime-minister-designate Najib Miqati attempts to form a new government in the deeply divided country.
The U.S. has warned that Hizbullah's moving into a bigger role in the Lebanese government could harm ties between the two long-time allies.
LCB, which reported assets of 6.1 million dollars for 2010, operates 35 branches in Lebanon and, despite its name, only has a representative office in Canada, in Montreal.
It was the second move in two weeks by Washington against Joumaa's alleged drug syndicate. On January 26 Treasury slapped sanctions against Joumaa, at least nine other people, and 19 entities, forbidding U.S. citizens and businesses from trading with the group, and freezing its U.S. assets.
The group is said to have sold multi-ton shipments of cocaine from South America, laundering the proceeds in Europe and the Middle East via foreign-exchange businesses.
