Lebanon's Bank Audi has closed more than 30 accounts belonging to UK citizens or their close relatives since a London court ordered it to transfer funds stuck in the crisis-hit banking sector to a British client, a depositors' union said.
The February 28 order requiring Bank Audi and its peer SGBL to transfer $4 million is the first UK ruling obliging Lebanese banks to transfer dollars out of the paralysed financial system, potentially encouraging similar claims.
A Bank Audi official told Reuters the bank was "asking that the UK residents apply the terms applicable to anyone opening a new account: no international transfers, no cash withdrawals".
"If this is not accepted, then the bank has no choice but to close the account".
More than $100 billion remains stuck in a banking system paralysed since 2019, when the economy collapsed due to decades of unsustainable state spending, corruption and waste.
In the absence of formal capital controls, banks have largely blocked dollar withdrawals and transfers abroad, sparking numerous legal challenges, with mixed results.
Since the UK order, Bank Audi, one of Lebanon's biggest, has told dozens of clients their accounts had been closed and a cheque issued for the balance at a notary public, lawyer Dina Abou Zour of the Depositors Union told Reuters.
They were told the accounts could be reopened if they signed a form waiving the right to make international transfers or to withdraw dollars in Lebanon, and accept that a cheque was due payment of the balance. Ms Abou Zour said the total amounts involved were in the tens of millions of dollars.
Banks have already closed many dollar accounts by issuing cheques which cannot be cashed and instead change hands in the market, currently at about a quarter of their face value.
Bank Audi has said it intends to comply with the UK order but will consider its options on an appeal.
British passport holder Maliha Badr Raydan said she got a call from a Bank Audi employee on Monday saying her account had been closed and a cheque issued for the balance. A second UK citizen said the bank told him the same on Wednesday.
"They said it's because I have British passport," Ms Raydan said, adding that money had been earmarked for the education of her two children after the death of her husband.
She was told she could open a new account if she signed a form waiving some of her rights. She declined to do so.
"I didn't steal this money, I did nothing wrong, it's the labour of my late husband over all these years and the future of my children and the other people I support."
A copy of the form seen by Reuters sets terms for opening new accounts, including accepting that only Beirut courts have jurisdiction in any legal dispute.
I didn't steal this money, I did nothing wrong, it's the labour of my late husband over all these years and the future of my children and the other people I support
Maliha Badr Raydan,
Bank Audi depositor
The Bank Audi official said the bank had not asked clients to waive the right to bring lawsuits.
Bank Audi says the UK order will lead to unequal treatment among depositors, with wealthy savers who are UK residents able to get all their funds at the expense of others who cannot bring such cases.
Many Lebanese have protested against unfair treatment by banks throughout the crisis, with influential clients able to make withdrawals and transfers abroad and ordinary people unable to send even small sums to children studying abroad, for example. Banks have been calling for a capital control law.
A British embassy representative said: "This unfortunate situation is symptomatic of Lebanon’s failing economy and underlines the urgency of Lebanon’s government adopting comprehensive economic reforms."
Getting there
The flights
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
The Lowdown
Us
Director: Jordan Peele
Starring: Lupita Nyong'o, Winston Duke, Shahadi Wright Joseqph, Evan Alex and Elisabeth Moss
Rating: 4/5
From Conquest to Deportation
Jeronim Perovic, Hurst
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
RESULTS
2pm: Handicap (PA) Dh40,000 (Dirt) 1,000m
Winner: AF Mozhell, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)
2.30pm: Maiden (PA) Dh40,000 (D) 2,000m
Winner: Majdi, Szczepan Mazur, Abdallah Al Hammadi.
3pm: Handicap (PA) Dh40,000 (D) 1,700m
Winner: AF Athabeh, Tadhg O’Shea, Ernst Oertel.
3.30pm: Handicap (PA) Dh40,000 (D) 1,700m
Winner: AF Eshaar, Bernardo Pinheiro, Khalifa Al Neyadi
4pm: Gulf Cup presented by Longines Prestige (PA) Dh150,000 (D) 1,700m
Winner: Al Roba’a Al Khali, Al Moatasem Al Balushi, Younis Al Kalbani
4.30pm: Handicap (TB) Dh40,000 (D) 1,200m
Winner: Apolo Kid, Antonio Fresu, Musabah Al Muahiri
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Disability on screen
Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)
Rosewood and Transparent — heart issues
24: Legacy — PTSD;
Superstore and NCIS: New Orleans — wheelchair-bound
Taken and This Is Us — cancer
Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)
Grey’s Anatomy — prosthetic leg
Scorpion — obsessive compulsive disorder and anxiety
Switched at Birth — deafness
One Mississippi, Wentworth and Transparent — double mastectomy
Dragons — double amputee
Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test India won by innings and 53 runs at Colombo
- 3rd Test August 12-16 at Pallekele
