Lebanon's central bank said it wouldguarantee all "legitimate deposits" in the newly sanctioned JammalTrust Bank, which on Friday rejected U.S. allegations that it helps to fundIran-backed Hezbollah.
Washington hit the bank and itssubsidiaries with sanctions on Thursday for allegedly facilitating thefinancial activities of the Shi'ite Hezbollah movement in Lebanon. The U.S.Treasury Department accused the bank of funneling money to the families ofsuicide bombers.
Secretary of State Mike Pompeo saidthe United States is determined to cut off support in Lebanon for heavily armedHezbollah, which Washington classifies as a terrorist group.
Lebanon's central bank Governor RiadSalameh told Reuters on Friday that it would guarantee money put in the bank bydepositors not subject to sanctions.
Jammal Trust, a 50-year-old privatecommercial bank in Lebanon, said it "unequivocally denies all theallegations" that prompted what it described as "surprising"sanctions.
The bank's statement said it has"unwavering commitment to … international regulations on counteringmoney laundering and terrorism financing".
Jammal Trust Bank has 25 branches inLebanon and representative offices in Nigeria, the Ivory Coast and Britain, itswebsite says.
The bank is a relatively smalllender. It had net assets of 1,600 billion Lebanese pounds ($1 billion) at theend of 2017, according to the annual report on the latest year for which datais available.
Washington has sought to choke offHezbollah's funding worldwide, with sanctions among a slew of steps againstTehran since U.S. President Donald Trump withdrew last year from a 2015international nuclear deal with Iran.
Finance Minister Ali Hassan Khalil joined Salameh in seeking to reassuredepositors.
