Lebanese parliament approves law lifting banking secrecy
The Lebanese parliament has approved a law aimed at removing banking secrecy in the country, a key reform demanded by the International Monetary Fund for a $3 billion package to be delivered.
A majority of 87 MPs voted for the law, while 13 were against in the 128-member legislature. There is a 10-year retroactive clause in the law, meaning that it will apply to all accounts dating back to 2015.
For decades Lebanon had been known for its banking secrecy, which prevented banks from disclosing any information about their clients or their accounts to anyone. But while that secrecy was once seen as a tool to help the economy, in recent times it has been viewed as a cover for corrupt practices.
Former central bank governor Riad Salameh has been detained over charges of embezzling public funds. Nady Salameh, the son of Riad, is among close relatives of top officials accused of transferring money abroad and evading the withdrawal restrictions faced by most Lebanese.
The IMF deal entered into a staff-level agreement with the state in April 2022, but Lebanon was accused of dragging its feet in introducing the reforms required.
Economic reform
Lebanon's new leaders insist they are committed to the IMF programme but have sought to renegotiate it.
International donors have also made economic reform, which would include lifting baking secrecy, a key requirement for Lebanon to access the much-needed aid to rebuild the country after it suffered widespread devastation during Israel 's war with Hezbollah last year.
Lebanon's economy, already struggling at the time, experienced a severe downturn in 2019 that has been blamed on decades of financial mismanagement and corruption by the country's ruling classes.
The crisis has culminated in the depreciation of the local currency, falling by more than 95 per cent against the US dollar. It has also seen depositors locked out of their savings.
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