Abu-Ghazaleh Heads Seminar on Suspicious Funds Monitoring, Money Laundering Elimination Through International Cooperation

Under the patronage of Mr. Fahim Mo’dad deputy governor of Lebanon Bank, in cooperation with the Arab Society for Certified Accountants (ASCA), the Central Bank of Lebanon (CBL) organized a seminar in the lecture hall in Beirut on 26, April 2003. The Seminar focused on the monitoring of suspicious funds vis-à-vis the by-laws, procedures and responsibilities.

Mr. Talal Abu-Ghazaleh, Chairman of ASCA, spoke at the opening ceremony in which he stressed that money laundering is a challenge for the moral, spiritual, ethical framework of the nation. He demanded to confront the audacity of perpetrators who commit their crimes, which are against national and international laws, in broad daylight.

Mr. Abu-Ghazaleh said that in order to fight this dangerous phenomenon the governments, the leading financial institutions and banks all have to join forces and to double their efforts. It is their duty to meticulously examine large and complicated money transfer transactions, especially those that enter through the banking system and lack economic motives and legal cover.

Mr. Abu-Ghazaleh also added that money laundering made the major industrial states to cooperate and establish the Financial Committee for Fighting Money Laundering. Several Arab countries as well have exerted efforts in lieu with the international efforts and issued, for this purpose, legislation, laws and regulations that guarantee that the banking systems and national economy are immune, or at least able to counter the perils of this criminal activity.

Mr. Abu-Ghazaleh indicated that several countries, where illegal weapons and drugs trafficking is widespread, provide facilities, and in some cases their national income depends on such illicit financial activities. According to a report published by the US Department of State, the entity known as “Israel” is considered a principal center for money laundering. The report based on the investigations of American government and security officials assert that people involved in money laundering use the well-developed infrastructure in Israeli banks to hide their ill-gotten gains.

The report added that at the moment, there is no right to prosecute criminals who deal in money laundering in (Israel) due to the absence of a special law for this phenomenon. In addition to that, organized crime bosses take advantage of the strict secrecy in banks and the easy immigration policies and thus contribute to making the Israeli Entity a principal center for money laundering.

Mr. Abu-Ghazaleh called upon the specialized international organizations and institutions whose primary concern is the security and growth of the global economy to play a more effective role in fighting money laundering. This can only be done by incriminating and punishing any country or entity upon establishment of proof that said parties are facilitating such illegitimate acts, in order to control this phenomenon and prevent its expansion in the international economy.

Mr. Abu-Ghazaleh considered that such phenomenon to represent a clear battle between good and evil. He added that the practitioners of accounting and auditing play an essential part in this crucial fight since their contribution are invaluable to the efforts through their professional services and their role in investigation, revision, auditing and proper professional commitment.

Mr. Abu-Ghazaleh also indicated that those who commit money-laundering crimes have benefited from the revolution in ICT. They have employed mercenary experts to penetrate the banking systems to facilitate their criminal activities. This can only place a larger and bigger responsibility on the international community to join in this battle with vigor and determination that can only lead to victory.

The seminar discussed a number of working papers ranging from the definition of suspicious funds, to the internal monitoring mechanisms in commercial banks, as well the role of governments. The laws in the Arab Countries were also examined, and in particular the Lebanese Experience in this field.

Among those who participated in presenting working papers were Mr. Tawfiq Ayoub member in the board of directors in the ASCA., Antoun Matar (C.A.), Hekmat Saleim from Lebanon, Dr. Mohammad Baaseeri the Secretary of the Lebanese Special Investigation Committee.