December 15, 2011 01:48 AM    The Daily Star

http://www.dailystar.com.lb/Business/Lebanon/2011/Dec-15/156939-nyt-hezbollah-used-lcb-to-launder-money.ashx#axzz1gZ0LDgI6

BEIRUT: The Lebanese-Canadian Bank was the hub of international money-laundering operations used to fund Hezbollah, a New York Times article said Wednesday.

The article says the LCB, which in February was accused of laundering money from international crime rings with ties to the party, leading to its sale, aided in the laundering of millions of dollars a year from international businesses, including some used as a front to move money from international drugs rings into the legitimate economy.

Hezbollah has denied receiving money via LCB bank accounts.

A leading banker, speaking on condition of anonymity, told The Daily Star Wednesday that the timing of the article is very suspicious. “Why are they [The New York Times] opening this file again although the Central Bank took quick and decisive action to contain the negative effects of the Lebanese-Canadian Bank?” the banker asked.

The banker felt some quarters are trying to undermine the reputation of the Lebanese banks for ulterior motives.

“Most of the information about the banks in the article is baseless and [a] figment of the author’s imagination,” the banker said. According to the report, those brought in to audit the company after the sale of its assets to Société Générale de Banque au Liban in the wake of the scandal uncovered 200 accounts suspected of money laundering and links with Hezbollah. The original investigation into the bank included the discovery that senior bank managers had facilitated a scheme which involved laundering drug money by integrating it with funds from used cars bought by Lebanese businessman Ayman Joumaa in the U.S. and sold in Africa.

The U.S. Drug Enforcement Agency says the LCB deposited some of the funds directly to Hezbollah, the report says.

Joumaa was indicted Tuesday by the U.S. on suspicion of running an international drug smuggling ring involving suppliers in Colombia and the notorious Los Zetas drug gang of Mexico.

According to the report the investigation revealed that several businessmen – mainly Shiite, often known Hezbollah supporters – used the bank for businesses based in West Africa that appeared to be a front to enable Hezbollah to move funds.

According to the newspaper, the LCB also provided a crucial loan to aid a relative of a former Hezbollah commander, Ali Tajeddine, to buy over 740 acres of land in the Chouf using Shiite diamond dealer, Nazem Said Ahmad as a front.

Hezbollah MP Ali Fayyad, who was interviewed for the story, reiterated to The Daily Star his rejection of the allegations. “I rejected the story they had about buying lands in the Chouf area. Those were regular businessman,” Fayyad told The Daily Star. Fayyad rejected the idea the bank would assist Hezbollah as it was “not even a Shiite organization,” and said links between businessmen in Africa and Hezbollah were imagined.