U.S. Judge Dismisses Lawsuit Against Lebanese Banks for Alleged Ties to Hizbollah

By Colby Adams

A federal court's dismissal of a two-year old lawsuit against five Lebanese banks for allegedly providing financial services to Hizbollah could impact lawsuits against other banks facing similar cases. Over 50 Israeli citizens, including relatives of those killed by rockets originating from Lebanon in July 2006, sued Fransabank, Banque Libanaise Pour Le Commerce, Bank of Beirut, Banque Libano-Francasise and Middle East Africa Bank in July 2008 for allegedly providing financial services to the blacklisted terrorist group. The lawsuit, brought under the Alien Tort Claims Act said that the banks willfully disregarded know-your-customer procedures, allowing Hizbollah to open accounts through front...