BEIRUT: Lebanon’s parliament on Thursday approved amendments to banking secrecy legislation, a key reform demanded by the International Monetary Fund, as Lebanese officials hold meetings with global finance institutions in Washington.
A statement from speaker Nabih Berri’s office said parliament passed amendments to “the law related to banking secrecy” and to monetary legislation.
The international community has long demanded major fiscal reforms to unlock billions of dollars in aid to restart the Lebanese economy in the wake of a five-year economic collapse widely blamed on mismanagement and corruption.
The crash since 2019 has seen the local currency lose most of its value against the US dollar and has pushed much of the population into poverty, with ordinary people locked out of their savings.
The recent war between Israel and Lebanon’s Iran-backed Hezbollah group has worsened matters, with the cash-strapped country now also needing funds for reconstruction.
Lebanese rights group Legal Agenda said the amendments allow “banking supervisory and regulatory bodies... to request access to all banking information without linking the request to a specific objective.”
These bodies will now be able to access information including customer names and deposit details, and look into possible suspicious activity, the group said.
Lebanon has long had strict rules over bank account privacy that critics have said makes it susceptible to money laundering.
The cabinet had approved the amendment earlier this month, saying it would apply retroactively for 10 years from the date of request.
That means it would apply to the start of the economic crisis, when bankers were accused of assisting influential individuals to transfer large amounts of money overseas.
Parliament’s approval comes with Finance Minister Yassine Jaber, Economy Minister Amer Bizat and new central bank governor Karim Souaid in Washington for meetings with the World Bank and IMF.
Jaber said earlier this week that parliamentary approval of the banking secrecy amendment would give a “boost” to the delegation’s meetings.
In April 2022, Lebanon and the IMF reached conditional agreement on a $3-billion loan package, but painful reforms that the 46-month financing program would require have largely not happened.
In February, the IMF said it was open to a new loan agreement with Beirut following discussions with the newly appointed Jaber.
The new government has pledged to implement other required reforms, and approved draft legislation on restructuring the banking sector earlier this month.
Lebanon parliament approves changes to banking secrecy law
https://arab.news/jqdx9
Lebanon parliament approves changes to banking secrecy law
- The international community has long demanded major fiscal reforms to unlock billions of dollars in aid to restart the Lebanese economy
- The crash since 2019 has seen the local currency lose most of its value against the US dollar
Iran envoy: Saudi Arabia a pivotal partner, relations ‘fortified’
- ‘Our contacts continue at all levels,’ Ambassador Alireza Enayati tells Asharq Al-Awsat
- Alireza Enayati: Iran and the Kingdom are keen on the security and stability of the region
RIYADH: A senior Iranian official said that relations with Saudi Arabia are “fortified” and cannot be undermined, highlighting both nations’ shared commitment to regional security and stability.
Alireza Enayati, Iran’s ambassador to Saudi Arabia, said in an exclusive interview with Asharq Al-Awsat that both countries are committed to preventing escalation and avoiding actions that could destabilize the region.
He added that contacts and coordination between the two countries are taking place at various levels, including visits, meetings and private discussions.
Enayati said: “We must recognize the sensitivity of the current situation amid repeated threats facing the region and the risk of sliding into unprecedented escalation.
“In Iran, we believe that regional stability serves the interests of all countries in the region, and we have repeatedly sensed this affirmation during our meetings and encounters with Saudi officials.”
A senior Saudi official had told Asharq Al-Awsat on Saturday that reports circulated by some media outlets about a change in the Kingdom’s position regarding escalation in the region were inaccurate.
The source said that Saudi Arabia supports efforts aimed at reaching a peaceful solution to all disputed issues between the US and Iran through dialogue and diplomatic means, stressing the Kingdom’s rejection of the use of its airspace or territory for any military actions against Iran.
Enayati pointed to the existence of “ongoing contacts and exchanges between the two countries at various levels, including visits and meetings — some of which are public, while others are held away from the media.”
The Iranian diplomat said that Tehran “considers Saudi Arabia a pivotal and influential state in the region,” adding that cooperation between the two countries on issues of mutual interest “contributes to strengthening the region’s security and stability.”
He said: “Iran and the Kingdom are keen on the security and stability of the region, and emphasize the need to avoid escalation and steer clear of anything that could disturb regional calm.”
Consultations are taking place between the two sides “stemming from a strategic conviction that has crystallized for both parties and serves their interests as well as those of the region as a whole,” Enayati added.
“The Kingdom views Iran as a reliable partner, while Iran regards Saudi Arabia as an important and effective state in the region, and their cooperation on issues of mutual interest helps consolidate regional security and stability.”
The ambassador said: “These relations are fortified and cannot be undermined, thanks to the leadership of both countries and their understanding of the inevitability of these relations, ensuring their continuity and growth, and the reflection of their positive effects on all.”
Enayati recalled the Saudi position in support of Tehran during its recent war with Israel, saying: “Iran welcomed the Saudi position supporting it during the war imposed on it, as Saudi Arabia strongly condemned the Israeli aggression against Iran, and we received a phone call that morning from the Saudi foreign minister. This stance was not surprising from our Saudi brothers, who stood by us during that phase.”
He added: “Second, any harm to Iran affects the security of the entire region, and this was clearly reflected in constructive positions, including that of the Kingdom. Third, the attack on Iran comes within a series of Israeli attacks that have targeted countries across the region, and no state is immune from these aggressions.”
Regarding talk of a negotiating framework taking shape between Iran and the US, Enayati said that Iran “entered the negotiations in 2015 and 2025 with full seriousness, but the US withdrew from them and dealt with them in a contradictory manner.”
He added: “If the US is serious about an equal dialogue without preconditions, Iran welcomes that, and Iranian officials have repeatedly affirmed this position.
“We recently heard statements indicating that the two sides are working to establish a framework for negotiations; however, negotiations cannot begin with predetermined outcomes. Rather, their results must emerge from the negotiating process itself, not be imposed on it in advance.”
Crown Prince Mohammed bin Salman, during a phone call he received from Iranian President Masoud Pezeshkian last week, highlighted the Kingdom’s support for any efforts aimed at resolving disputes through dialogue in a manner that enhances regional security and stability.
During the call, the Saudi crown prince stressed Riyadh’s position on respecting Iran’s sovereignty and the Kingdom’s refusal to allow the use of its airspace or territory for any military actions against Iran, or for attacks by any party, regardless of their direction.
Pezeshkian expressed his gratitude to Saudi Arabia for its respect of Iran’s sovereignty and territorial integrity, and his appreciation for the crown prince’s efforts and initiatives to achieve regional security and stability.
