Jammal Trust Bank, a/k/a/ JTB Bank, recently sanctioned by the OFAC, and reputed to be Hezbollah's bank of choice, has advised the Central Bank of Lebanon that it will close, and be liquidated forthwith. The new sanctions, which deny the bank total access to the American financial structure, operates as a bank death penalty, for it can no longer properly service its international clients.
The Central Bank reportedly has given its approval to the liquidation; it has publicly said that the bank's assets, and existing deposit guarantees, will be sufficient to repay all deposits. We have previously reported on the bank's off-the-book loans to Hezbollah, secured by gold.
Compliance officers please note that the bank has 25 offices and branches, located in Lebanon, Nigeria, the Ivory Coast and the UK. The African jurisdictions are all known for Hezbollah money laundering activity, as well as transit centers for its narcotics trafficking operation into Europe from Latin America.