A civil lawsuit, filed in US District Court in New York (EDNY), has asserted that eleven prominent Lebanese financial institutions are allegedly providing material support to Hezbollah, in the form of financial and banking services. The Complaint alleges that the banks are well aware of their role in facilitating Hezbollah.
The banks, which are all parties defendant, are:
BLOM BANK SAL
BANK AUDI SAL
SOCIETE GENERAL DE BANQUE AU LIBAN SAL
JAMMAL TRUST BANK SAL
BYBLOS BANK SAL
LEBANON AND GULF BANK SAL
BANK LIBANO-FRANCAIS SAL
MIDDLE EAST AND AFRICA BANK SAL
BANK OF BEIRUT AND THE ARAB COUNTRIES SAL
Given the US designation of Hezbollah as an FTO, Foreign Terrorist organization, any American bank found to be providing material support to a terrorist organization could be indicted. Do not count on a Deferred Prosecution Agreement or a civil OFAC penalty to save your bank. The best way to reduce risk to manageable levels is to red-line contact with all the above banks. You may lose some business, and some clients may move to your competition, but you will escape the reputation damage that being indicted will cause.