Hard Money Loans

D.C., Washington, United States (AHN) – Washington has blacklisted the Lebanese Canadian Bank for money laundering for terror groups, particularly for the banned Islamist group Hezbollah.

According to the U.S. Drug Enforcement Administration and the U.S. Treasury, the bank took part in a complex scheme to ship cocaine from Colombia and Panama and sell it in Europe, the Middle East and U.S.

The proceeds of the sales of the drugs were deposited with the bank’s Beirut office, wired to U.S. accounts and used for the purchase of second-hand vehicles that were resold in western Africa.

The bank moves up to $200 million a month, according to the U.S. authorities.

The bank, which has 35 branches in Lebanon and an office in Montreal, used to be owned by the Royal Bank of Canada, but was sold to Lebanese-Canadian investors in 1988. Its office in Canada handles only sales, it does not remit or accept money in the country. RCB is a correspondent bank of LCB.

American authorities charged the bank with violation of the U.S. Patriot Act. It is the first time in six years that Treasury officials have used the Act since they last used it against a North Korean bank.

According to reports, the Treasury tried to cut off the bank’s access to U.S. financial markets. The Act gives Treasury officials the power to require American financial institutions to end transactions with any other banks suspected of money laundering.

Following Washington’s accusations, the Canadians Finance Department said it will review the LCB’s status. LCB’s Montreal office denied Washington’s charges.

LCB was previously sued in New York and Quebec by Israeli victims of Hezbollah rocket attacks. The victims claimed the bank handled wire transfers for the Hezbollah, which is based in Lebanon.

View full post on Economy, Business And Finance Stories