Banking Corrpution

Amidst the severe economic and livelihood crisis Lebanon is witnessing, banks have exacerbated the crisis by flatting out, breaking all laws, seizing their depositors’ funds, and setting limits for monthly withdrawals in a manner that suits them without the slightest regard for people’s needs and rights. This, of course, comes after allowing favored depositors with very large accounts or politicians to transfer their dollars abroad.

UFL has taken it upon itself to address the issue of banking corruption given the lack of oversight and follow-up by governmental or supervisory bodies, and the proven failure of the financial policies of the Central Bank and succeeding governments. This took place after prioritizing the interests of Lebanese bank board members and their shareholders over those of the Lebanese people and the sanctity of the Constitution.

Claims against the Association of Banks in Lebanon and Private Banks 

On April 22, 2020, UFL filed a criminal complaint against the defendants, the Association of Banks, and a number of private banks represented by the chairs of the boards of directors, for the crimes of credit abuse and incitement. Further crimes involved issuing memorandums to banks contrary to the provisions of the Lebanese Constitution, especially the paragraph that assures equality and social justice in rights and obligations among all citizens without distinction; the one which states that the economy is a free system that guarantees individual initiative and private ownership; and Article 15 of the Constitution, which asserts that property is under the protection of the law.

On May 7, 2020, UFL issued legal notices to the Association of Banks in Lebanon and 20 banks. The alliance informed them to immediately return any deposits and funds withheld to their customers, taking into account the damage done to each depositor who was unable to get their money. That was done on the pretext of taking the proper legal action, such as imposing travel bans and seizing their movable and immovable money.

Lawsuits through POA for Depositors

UFL lawyers represent rights holders legally, with the aim of claiming their rights in court. The alliance has succeeded in following up on a number of files at different courts, where depositors were able to enforce cautionary and executive seizures over banks’ assets and funds.