Lebanon Reforms Banking Secrecy: A Key Measure for Its Donors
On Thursday, Lebanon’s Parliament voted to expand regulatory bodies’ access to banking information, a crucial reform demanded by international donors, including the IMF, in response to the country’s severe economic crisis.
The government announced that the law would be applied retroactively over a ten-year period, encompassing the onset of the economic crisis when bankers were accused of facilitating the transfer of substantial funds abroad for prominent figures.
Lebanese Prime Minister Nawaf Salam described this as “a vital step towards financial reform” that his government is committed to implementing, and as a “critical pillar of a reconstruction plan.” He emphasized that this measure is “essential for restoring depositors’ rights and rebuilding trust among citizens and the international community.”
He noted that Lebanon’s long-standing financial opacity is no longer appealing to investors as it once was.
Finance Minister Yassine Jaber, currently in Washington with his colleague from the Economy, Amer Bisat, and the new Governor of the Central Bank, Karim Souaid, assured that “this law does not imply that anyone can walk into a bank and request details about any account.”
These officials are scheduled to meet with representatives from the World Bank and the International Monetary Fund (IMF). Historically, Lebanon has been regarded as a regional financial hub, with its stringent banking secrecy laws seen as advantageous until the severe economic and financial crisis erupted in 2019, tarnishing its reputation.
