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Last update - 20:32 08/07/2008
Lebanon Central Bank chief slams U.S. lawsuit claiming banks funded Hezbollah
By The Associated Press
Tags: Israel, Hezbollah 

Lebanon's Central Bank governor on Tuesday criticized a lawsuit filed in New York in which several Israeli victims of Hezbollah rocket attacks blame some Lebanese banks for helping fund the militant group.

The lawsuit filed in U.S. District Court in Manhattan Thursday seeks at least $100 million in damages on behalf of 57 victims. It notes that the Lebanese banks maintained relationships with various U.S. banks through which, the lawsuit says, the Lebanese banks were able to provide Hezbollah with regular, systemic and unfettered access to U.S. currency, enabling it to buy missiles and other weapons.

The banks were identified as Fransabank Sal, Banque Libanese Pour Le Commerce, Bank of Beirut Sal, Banque Libano-Francaise Sal and the Middle East Africa Bank.
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The banks did not immediately reply to the lawsuit in court, and it was not clear who might represent them there. An e-mail sent to Banque Libano-Francaise Sal on Monday was not immediately returned.

But Governor Riyad Salemeh said in a terse statement commenting on the lawsuit Tuesday that the "Lebanese banking sector is committed to international standards and operates within international laws." He did not elaborate.

The lawsuit says the plaintiffs were all victims of missile attacks launched by Hezbollah against civilian targets in Israel during the 2006 summer war between Israel and Hezbollah.

More than 1,200 Lebanese, mostly civilians, were killed in that war. Israel lost about 160 people in the 34-day conflict, most of them soldiers.

There was no immediate comment from Hezbollah on the lawsuit.

The lawsuit based its conclusions on an analysis of publicly available U.S., Israeli and United Nations reports, news articles, academic journals, public policy center publications and police and medical reports.

The lawsuit said the banks violated international law by providing financial services to Hezbollah, including its military fundraising arm, the Islamic Resistance Support Organization. The lawsuit said a fundraising form of the organization asks donors whether they wish to fund specific items such as missiles or small arms.

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