Lebanese Canadian Bank

The Lebanese Canadian Bank (LCB), now defunct,[1] was a bank based in Beirut in Lebanon, which maintained a network of 35 branches in Lebanon and a representative office in Montreal, Quebec, Canada. The bank was established in 1960 as Banque des Activities Economiques SAL and was a subsidiary of the Royal Bank of Canada Middle East from 1968 to 1988, when it became a privately owned Lebanese bank. LCB provided a broad range of corporate, retail, and investment products, and maintained extensive correspondent accounts with banks worldwide, including several U.S. financial institutions. In 2009 LCB's total assets were worth more than $5 billion.[2]

In 2011, the US Drug Enforcement Administration and US Treasury and other US government authorities took legal action against LCB alleging that LCB had helped launder hundreds of millions of dollars monthly for a drug trafficking network between South America and the Middle East and Europe, via West Africa, a network which also helped the funding of Hezbollah and other terrorist organizations and money laundering for the narcotics community.[3][4] However, the US authorities declined to reveal the basis for these claims, which were denied by Hezbollah.[5] The US Treasury Department banned LCB from dealing in dollars, resulting in the sale of the bank.[6] In any event, in 2013, LCB agreed to pay $102 million in settlement of the action.[7]

On July 11, 2008, American Express Bank and the Lebanese Canadian Bank[8] was sued,[9] in New York, for being the correspondent bank to the Yousser Company for Finance and Investment and the Martyrs Foundation.[10] In addition, Canadian citizens filed the first civil action against the Lebanese Canadian Bank as victims of Hezbollah rocket attacks in a Canadian court.[11][12]

On 3 March 2011 it was announced that LCB was to merge with French bank Société Générale.[6] The sale was effected by a transfer of most of the bank's assets to the Lebanese subsidiary of Société Générale,[3] Société Générale de Banque au Liban (SGBL).

References
  1. Smythe, Christie. "Lebanese Canadian Bank to Pay $102 Million to Settle Suit". Bloomberg website. 25 June 2013. Retrieved 10 July 2015. https://www.bloomberg.com/news/articles/2013-06-25/lebanese-canadian-bank-to-pay-102-million-to-settle-suit
  2. Section "Background on LCB" in US Treasury website, 10 Feb 2011, retrieved 10 July 2015. "Treasury Identifies Lebanese Canadian Bank Sal as a “Primary Money Laundering Concern”" http://www.treasury.gov/press-center/press-releases/Pages/tg1057.aspx
  3. O’Neill, Dominic, "Bank of Beirut fine adds to Lebanon woes", Euromoney, April 2015. (Retrieved 10 July 2015).
  4. US Treasury website, 10 Feb 2011, retrieved 10 July 2015. "Treasury Identifies Lebanese Canadian Bank Sal as a “Primary Money Laundering Concern”"
  5. Becker, Jo. "Beirut Bank Seen as a Hub of Hezbollah’s Financing". New York Times. 13 December 2011.
  6. Karouny, Mariam. "Lebanon's LCB to merge with Societe Generale unit", Reuters website, 3 March 2011. (Retrieved 10 July 2016).
  7. US Department of Justice website, "Manhattan U.S. Attorney Announces $102 Million Settlement Of Civil Forfeiture And Money Laundering Claims Against Lebanese Canadian Bank", retrieved 10 July 2015.
  8. Swaby, Nickeesha (2008-07-10). "Lebanese Canadian Bank Accused|Of Helping To Finance Hezbollah". Retrieved 2020-01-28.
  9. "Tamam et al v. Fransabank Sal et al, No. 1:2008cv06156 - Document 59 (S.D.N.Y. 2010)". Justia Law. Retrieved 2020-01-28.
  10. PerelmanJuly 17, Marc; 2008. "U.S. Bank Sued for Allegedly Helping To Fund Hezbollah". The Forward. Retrieved 2020-01-28.CS1 maint: numeric names: authors list (link)
  11. "Lebanese Canadian Bank faces lawsuit | The Star". thestar.com. Retrieved 2020-01-28.
  12. "Lebanese-Canadian Bank sued over bombings". UPI. Retrieved 2020-01-28.
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