# Lebanese bank closes over 30 British-held accounts after UK ruling-depositors’ group Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-04 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Lebanese Bank Audi Closes UK Accounts Amid Legal Battle Meta Description: Lebanon's Bank Audi closes accounts of UK nationals as ordered to transfer $4 million out, sparking legal challenges in the country's paralysed URL: https://financedigest.com/lebanese-bank-closes-over-30-british-held-accounts-after-uk-ruling-depositors-grouphtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-03-04t155653z1lynxmpei230vrrtroptp4lebanon-crisis-uk-banks-1736816023073-compressed.jpg) By Timour Azhari and Tom Perry BEIRUT (Reuters) – Lebanon’s Bank Audi has closed more than 30 accounts belonging to UK nationals 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 Feb. 28 order requiring Bank Audi and its peer SGBL to transfer $4 million is the first UK ruling obliging Lebanese [banks to transfer dollars](https://www.financedigest.com/dollar-skulks-at-eight-month-low-central-bank-meetings-in-focus.html "Dollar skulks at eight-month low, central bank meetings in focus") 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](https://www.financedigest.com/dutch-online-bank-bunq-applies-for-u-s-banking-licence.html "Dutch online bank Bunq applies for U.S. banking licence") 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”](https://www.financedigest.com/are-banks-ready-for-the-new-accountability-regime-in-2016.html "ARE BANKS READY FOR THE NEW ACCOUNTABILITY REGIME IN 2016?"). More than $100 [billion remains stuck in a banking](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse billion lifeline offers limited respite to global banks") 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](https://www.financedigest.com/deutsche-bank-equity-bear-market-rally-will-stretch-into-2023-dollar-weaker.html "Deutsche Bank: Equity bear market rally will stretch into 2023, dollar weaker") 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](https://www.financedigest.com/new-global-relationship-between-reckon-software-and-myfirmsapp-delivers-closer-interaction-between-accountants-and-their-clients.html "NEW GLOBAL RELATIONSHIP BETWEEN RECKON SOFTWARE AND MYFIRMSAPP DELIVERS CLOSER INTERACTION BETWEEN ACCOUNTANTS AND THEIR CLIENTS") 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](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns"). Abou Zour said the total amounts involved were in the tens of millions of dollars. [Banks have already closed many dollar accounts](https://www.financedigest.com/new-legislation-makes-switching-bank-accounts-simples.html "New legislation makes switching bank accounts “simples”") by issuing cheques which cannot be cashed and instead change hands in the market, currently at about a quarter of their face value. “FAILING ECONOMY” Bank Audi has said it intends to comply with the UK order but will [consider its options](https://www.financedigest.com/3-options-to-consider-when-you-owe-the-irs-back-taxes.html "3 Options to Consider When You Owe The IRS Back Taxes") on an appeal. British passport holder Maliha Badr Raydan said she got a call from a [Bank Audi employee on Monday saying](https://www.financedigest.com/boes-bailey-says-bank-reforms-worked-but-questions-about-liquidity-buffers.html "BoE’s Bailey says bank reforms worked but questions about liquidity buffers") her account had been closed and a cheque issued for the balance. A [second UK citizen said the bank](https://www.financedigest.com/dont-play-second-fiddle-how-disruptor-banks-can-leverage-music-and-audio.html "Don’t Play Second Fiddle: How Disruptor Banks Can Leverage Music and Audio") told him the same on Wednesday. They said it’s because I have British passport,” Raydan said, adding that money had been earmarked for the education of her two [children after the death](https://www.financedigest.com/loss-of-queen-brings-first-encounter-with-death-for-some-children.html "Loss of queen brings first encounter with death for some children") 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.”](https://www.financedigest.com/banks-need-to-digitise-financial-wellbeing-support-to-help-young-people-manage-through-this-recession.html "Banks need to digitise financial wellbeing support to help young people manage through this recession") A copy of the form [seen by Reuters sets terms for opening](https://www.financedigest.com/wall-street-seen-opening-higher-but-u-s-recession-priced-in.html "Wall Street seen opening higher but U.S. recession priced in") new accounts, including accepting that only Beirut courts have jurisdiction in any legal dispute. The Bank Audi [official](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates") said the bank had not asked clients to waive the right to bring lawsuits. [Bank Audi says](https://www.financedigest.com/boes-bailey-says-rate-setters-can-put-inflation-before-bank-worries.html "BoE’s Bailey says rate-setters can put inflation before bank worries") 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](https://www.financedigest.com/how-the-2023-banking-crisis-unfolded.html "How the 2023 banking crisis unfolded"), 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](https://www.financedigest.com/eu-lawmakers-call-for-summit-to-control-very-powerful-ai.html "EU lawmakers call for summit to control ‘very powerful’ AI") law. A British embassy spokesperson said: “This unfortunate situation is symptomatic of Lebanon’s failing [economy and underlines the urgency of Lebanon’s government adopting comprehensive economic](https://www.financedigest.com/mobile-money-could-pave-way-for-economic-stability-in-emerging-economies-but-only-if-banks-can-collaborate-on-services.html "Mobile money could pave way for economic stability in emerging economies – but only if banks can collaborate on services") reforms. (Reporting by Timour Azhari and Tom Perry; Editing by William Maclean) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---