“New” Capital Control: Martial Laws in the Hands of Salama and the Banks

The new “Capital Management” proposal forces the formation of a committee consisting of the governor of the Banque du Liban, Riad Salameh, who is the architect of the financial collapse in solidarity and complicity with the political authority, and the Minister of Finance Youssef Khalil, former banker and director of operations of the Banque du Liban for years, Salameh’s secretary, and current prime minister. Najib Mikati, the banker and fierce defender of banks, and the fourth member proposed to join the committee is Economy Minister Amin Salam, and we all know that he can not stand in the way of the banking system .
This committee gives the Capital Control Proposal absolute powers to “make customary provisions” against every bank account holder, whether new or old. It allows transfers and prevents them by its own decision. It determines bank withdrawals and pulls a mechanism of “blocking” on depositors’ funds, and it does what it wants without any deterrent or hindrance.
The new Capital Control proposal requires the Banking Control Commission to monitor the work of the committee (composed of Salama, Mikati, and the Minister of Finance and Economy), while even today the Banking Control Commission is unable to “reprimand” a bank that breaks down. the laws. The Oversight Committee is completely incompetent to exercise its powers, and a number of its members are ignorant of what their powers are. How can the Banking Control Commission monitor the “martial law” committee for the implementation of the Capital Control Act?

Martial Law Committee

The committee referred to in Clause no. 8 of the “Capital Control” proposal, as amended by the Deputy Prime Minister, His Excellency Al-Shamy, gives himself a mandate to control cash and banks outside the judiciary for a period of 5 years. Therefore, a parliamentary source, in an interview with Al-Modon, rules out that this proposal will be accepted. He says that this proposal can not succeed. If approved, it would ignite a new revolution, criticizing how it was distributed Thursday night, which would be referred to the joint committees next Monday, and to be voted on Tuesday. This is a very short time, which does not exceed one working day, and not sufficient to examine the proposal by all the delegates.
And how can a law give a committee that has no authority over it absolute powers to determine the terms, conditions and exceptions for all cross-border money transfers, current account payments and transfers. The “committee” shall also determine the special terms and conditions relating to the financial returns of exports and the method of their settlement, in accordance with a circular issued for this purpose by the Banque du Liban. The Committee is also free to determine and formulate restrictions on the manner and mechanism for subjecting cash withdrawals from all bank accounts, including new cash accounts. The committee has the right to set restrictions that will allow the withdrawal of no more than $ 1,000 per person per month, in the national currency or in foreign currency, as determined by the “committee”.
In short, they are handing over our necks to a committee in which the Minister of Finance, the Governor of the Banque du Liban and politicians are subject to change, and we do not know how the law will be applied by subsequent committees after the Prime Minister and the ministers represented on the committee. asks the legal expert and CEO of Juriscale Sabine koek: Is it the legislative stability under a committee that is subject to change? Then the renewal of the law can take place after 5 years. This means that the legislative authority will rest in the Council of Ministers with regard to Capital Control, and the Prime Minister will already chair the committee authorized to draw up all procedures, controls and restrictions on funds.

Capital management crime

Cake criticizes dozens of paragraphs and clauses in the new Capital Management proposal because they include serious legal impurities. And she believes that the political authority treats the Capital Management proposal as a single advantage in the chain of benefits, “Capital control is omitted from the context of the economic plan, and the political authority portrays it as the solution required of the International Monetary Fund, forget all that is required of the Fund from criminal audits and reforms in the Electricity file, removal of banking secrecy and other reforms.The government works only on engineering and passes of the Capital Control.

The new definitions in the Capital Management Proposal have many errors, for example the definition of new money. Under the new capital controls, not all new funds are transferable and disposed of as they would like. Also, not all money received from abroad can be considered as new money. Funds obtained from exports, for example, cannot be regarded as new money under the proposed law.

The catastrophe of the new law is represented in the dedication of the concept of investment funds, brokerage firms and brokers. According to Cake, the proposal for the new Capital Control Act in her interview with Al-Modon creates a new system with new definitions and new legal concepts. The law aims to create an alternative system for banks by expanding the powers of financial intermediaries and financial intermediaries. The banks then become mere fronts whose purpose is to dissolve deposits, in exchange for them enjoying the benefit of the funds they have transferred abroad. As Cake asks, “How can the banking sector be restructured while banks are unable to open accounts, according to the Capital Control Act?” “It is therefore becoming clear that the purpose of brokerage firms and trusts is to put the money they have smuggled abroad,” she says.

The text of the new “Capital Management” project

Leave a Comment