UANI challenges Lebanon central bank chief Salameh

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United Against Nuclear Iran (UANI) CEO, Ambassador Mark D. Wallace, issued the following statement Tuesday in response to the statement of Lebanon’s Central bank Governor, Riad T. Salameh on UANI’s concerns about the legitimacy of the Lebanese banking system:

Governor Salameh’s statements that portray the Lebanese banking system (LBS) as legitimate are not credible. Our findings clearly show that the Lebanese Central Bank, Banque du Liban (BDL), has presided over a banking system controlled by Hizballah and illicitly used by Iran.

Governor Salameh no longer presides over a legitimate LBS, and the illicit funding of Hizballah by Iran through Lebanese banks provides the foundational support of the LBS deposit base. That deposit base is used by Lebanon to fraudulently support the greater Lebanese economy, Lebanese sovereign-backed securities, and the credit default swaps (CDS) that insure those securities.

Without such illicit Hizballah and Iranian monies flowing into Lebanon, Lebanese banks would be unable to purchase Lebanese sovereign debt. Without such purchases, Lebanese sovereign debt (and premiums on the CDS) would reflect the true realities of the dire politics of Lebanon and the enormous Lebanese debt-to-GDP ratio – the 4th highest in the world.

Governor Salameh faces tough questions that he may be unable to answer. We call on him to answer the following:

1. Do you disagree that Hizballah is the dominant political party in

Lebanon?

2. Do you disagree with Hassan Nasrallah when he said:

a. “By the same means that we got weapons and other stuff, money

came as well … All of this has been achieved through Iranian

money!” (Neil MacFarquhar in The New York Times, “Iran

Is Seeking Lebanon Stake As Syria Totters,”, 5/24/12)

b. That Iran is the dominant financial supporter of Hizballah?

(Hurriyet Daily News, “Iran

Funds Hezbollah, Leader Nasrallah admits,” 2/ 9/12)

3. Do you disagree with the statement that “While Iran continues to

provide a significant portion of Hizballah’s funding, Hizballah

has also broadened its sources of financial support in recent

years. Hizballah is now heavily involved in a wide range of

criminal activity, including the drug trade and smuggling.” (United

States of America v. Lebanese Canadian Bank SAL, et al., 11

Civ., at p. 19, 12/15/11)

4. Do you agree that the international community “cannot hope to

apply effective financial pressure against a group like Hizballah

so long as it maintains massive inflows of cash from a state

sponsor of terrorism, in this case the Iranian Government.” ? (Adam

J. Szubin, Director, Office of Foreign Assets Control, U.S.

Department of the Treasury, Testimony before the Senate Committee

on Banking, Housing and Urban Affairs, 9/12/06)

5. Can you definitively say that BDL has not:

a. Transacted or held accounts with or for any Iranian institutions

or persons?

b. Transacted with the Iranian Central Bank, Bank Markazi?

c. Facilitated through the LBS the illicit Iranian support of

Hizballah and Iranian weapons sales and support of Hizballah and

Syria’s illegitimate Assad regime?

Last week, UANI announced the results of a three month-long investigation into the influence of Iran and Hizballah in the Lebanese banking system (LBS) and Lebanon’s sovereign bond market, and announced a campaign to compel legitimate financial institutions into divesting from Lebanon’s bond market.

Click here to read the Daily Star article “Salameh: Banking sector abides by law.” Click here to read the NOW LEBANON article “Flush with cash, Lebanese banks raise eyebrows.” Click here to view UANI’s research, “HIZBALLAH, LEBANON & IRAN: PARTNERS IN A SOVEREIGN MONEY LAUNDERING SCHEME.” Click here to read UANI’s May 28 letter to Riad Salameh. Click here to read UANI’s May 28 letter to Lebanese bondholders. Click here to read UANI’s May 28 letter to the world’s leading bond credit agencies. Click here to call on the U.S. Government to Sanction the Lebanese Banking System and for Bond Holders and Credit Agencies to end Lebanon Business.

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12 responses to “UANI challenges Lebanon central bank chief Salameh”

  1. dateam Avatar

    here we go..the booga wooga is coming again…because the american financial system is in dire straits so too the whole world has to be and now its lebanons turn….part of the reason lebanon and other smaller countries have not been as badly affected by the financial meltdown is because their economies are not as big and 2 people are no longer investing their money in the states or putting it their because the interest rate is almost o%…if im getting a return of 6.5% in lebanon why would i put money in the states at almost 0%…australia is another example of how it avoided the slump….people are no longer putting their money in the states…this is a classic case of protectionism….

  2. dateam Avatar

    here we go..the booga wooga is coming again…because the american financial system is in dire straits so too the whole world has to be and now its lebanons turn….part of the reason lebanon and other smaller countries have not been as badly affected by the financial meltdown is because their economies are not as big and 2 people are no longer investing their money in the states or putting it their because the interest rate is almost o%…if im getting a return of 6.5% in lebanon why would i put money in the states at almost 0%…australia is another example of how it avoided the slump….people are no longer putting their money in the states…this is a classic case of protectionism….

  3. dateam Avatar

    further dont forget that our central bank manager won awards for keeping lebanon out of the world economic downturn

    1. 5thDrawer Avatar
      5thDrawer

      Basically because they keep 30% reserves (unlike USA 10%), and don’t lend money easily to anyone.
      Probably a good ‘conservative’ plan, yes.
      Perhaps others are jealous … but also considering the political arena they operate in, Leb-Banks need to be careful for sure. Banking is a conservative business … Europe and USA opened it up too much, and stock-market greedy types took it for a ride.
      But those are the countries called on MOST to ‘help’ the stupid waring countries feed their people, take their refugees, and try to make some peace in the world. 
      What would people’s (theorists) comments be if ‘the west’ had said ‘we require more collateral, and want 12%, and also want to see viable results in 2 years, or we’re calling in the loans and collateral.’ ??  IMAGINE!
      Hell … there are ‘western’ kids running little anarchist protests already because they can’t get everything without working for it – let alone 3rd worlders expecting to be ‘saved’.
      Would a Lebanon Bank loan you money for a needed operation to save a life, based on your future potential income, since there is no health-care beyond stitching a bullet-hole??  NO!

  4. dateam Avatar

    further dont forget that our central bank manager won awards for keeping lebanon out of the world economic downturn

    1. 5thDrawer Avatar
      5thDrawer

      Basically because they keep 30% reserves (unlike USA 10%), and don’t lend money easily to anyone.
      Probably a good ‘conservative’ plan, yes.
      Perhaps others are jealous … but also considering the political arena they operate in, Leb-Banks need to be careful for sure. Banking is a conservative business … Europe and USA opened it up too much, and stock-market greedy types took it for a ride.
      But those are the countries called on MOST to ‘help’ the stupid waring countries feed their people, take their refugees, and try to make some peace in the world. 
      What would people’s (theorists) comments be if ‘the west’ had said ‘we require more collateral, and want 12%, and also want to see viable results in 2 years, or we’re calling in the loans and collateral.’ ??  IMAGINE!
      Hell … there are ‘western’ kids running little anarchist protests already because they can’t get everything without working for it – let alone 3rd worlders expecting to be ‘saved’.
      Would a Lebanon Bank loan you money for a needed operation to save a life, based on your future potential income, since there is no health-care beyond stitching a bullet-hole??  NO!

  5. I love the denial by the previous posters, when Iran and Syria are taken down what will the fat boy do then? Most likely destroy Lebanon with war, that’s what your born to do right? Destroy and subjugate, the way of Islam…

  6. I love the denial by the previous posters, when Iran and Syria are taken down what will the fat boy do then? Most likely destroy Lebanon with war, that’s what your born to do right? Destroy and subjugate, the way of Islam…

  7. Patience2 Avatar
    Patience2

    I shudder to think that I used to do business with the Salamehs.  Well, no more.

  8. Patience2 Avatar
    Patience2

    I shudder to think that I used to do business with the Salamehs.  Well, no more.

  9. Patience2 Avatar
    Patience2

    I shudder to think that I used to do business with the Salamehs.  Well, no more.

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