The ball in the parliamentary stadium … Does the law of raising banking confidentiality acknowledge a preparation for a financial renaissance?

However, the political forces that are supposed to study this law are now in front of an exam that awaits its results not only the Lebanese, but also the international community, led by the International Monetary Fund to test the seriousness of its deliberations. Are we on a date with a banking and financial renaissance?

The raising of banking confidentiality in Lebanon represents a historical turning point that exceeds the impact of financial affairs to include political, social and international dynamics within society and the state.

This radical transformation comes in light of intertwined economic turmoil and international pressures that integrate local and global factors into a multi -faceted environment in which the contradictions of reform are contradicted while preserving the system, according to the economist Professor Pierre El Khoury.
Returning to its beginnings, the Lebanese Banking Secret Law grew up in the 1950s, specifically in the year 1956, when the government put it at the time as an incentive to attract investments in the post -independence era. After initially enacted as a tool for development, this banking mechanism turned into a mechanism for corruption and money laundering, the Khoury said.

He pointed out that the bank deposits included before the crisis about 40% of the deposits of political and economic personalities in effect, according to unofficial estimates, stressing that the pressure to raise the secrecy becomes a real measure of the desire to reform, because the needs of transparency face the fundamental interests of the sectarian system.

Al -Khoury considered that at the global level, the decision is transformed by raising the secrecy from an option to a basic demand, especially since Lebanon suffers from increasing financial isolation, as it ranks 149 out of 180 countries on the corruption perception index.

To overcome this financial obstacle, Lebanon must fulfill the conditions of the International Monetary Fund, which, in addition to the requirements of the Igunt Group to combat money laundering, must limit the minimum reforms. In this context, the situation of Cyprus in 2013 shows that raising banking secrecy helps restore confidence, but it requires institutional reforms to be completely effective.

Al -Khoury stressed that this problem is a deep social dimension, as it threatens to reveal hidden wealth by deepening sectarian and social tensions within a country that is witnessing an unprecedented decrease in living standards. Popular discontent threatens social stability when the financial crises of the financial crises continue to work without consequences.

He said: “The majority of Lebanese are preferred to transparently, according to opinion polls, which show that 72% support this initiative, despite the concerns that it may target political opponents selectively.”

Al -Khoury added that the technical process to raise the secrecy faces great obstacles, as the Lebanese banking system works with an old technical infrastructure that lacks modern control systems to meet the needs of transparency. The Lebanese judicial system, which suffers from functional paralysis due to political divisions, lacks the ability to manage the large number of cases expected after the detection of accounts. In addition to the absence of clear legislation to protect personal data, a difficult situation in which transparency requirements conflict with privacy protection.

He considered that raising banking confidentiality could affect traditional power structures, in addition to its financial consequences. For decades, Lebanese political leaders used the banking system to finance their customer networks.

According to Al -Khoury, the potential exposure of these networks threatens existing sectarian and political balances, which explains the hidden opposition to the decision from some parties that support reformally, as the decision represents the essence of the efforts made to change the Lebanese political system as a whole.

He stressed that it is possible to implement the decision through judicial cooperation with European countries, due to the presence of billions of dollars from the illegal Lebanese money there. The possibility of international judicial cooperation depends on the effectiveness of Lebanese measures that face continuous challenges from political control over institutions. The practical application of agreements such as the tax compliance law of foreign accounts (FATCA) usually shows a large gap compared to the promises of power.

Al -Khoury believed that foreign companies that were previously avoiding Lebanon due to the absence of transparency may be considering investing now if the banking secrecy is raised. However, this depends on completing a reform package that includes the restructuring of the banking sector and the application of good governance. As a result, the corrupt capital may go towards more “safe” environments through the methods in force or by using encrypted currencies that are difficult to monitor.

And he considered that the main obstacle will emerge when the raising of secrecy turns from being a legal document to a practical reality, where Lebanon’s record of hesitation in reforms indicates that converting these ideas into an effective application involves great risks.

He pointed out that the absence of real political commitment, in addition to the continued influence of elites that benefited from the previous regime, creates strong risks to selective or distorted implementation.

So, raising banking secrecy will only be a crucial measure to determine Lebanon’s future prospects. This scale goes beyond the technical aspects, as it is an indication that shows whether Lebanon can move from an economy based on political proceeds to a transparent productive economy, subject to accountability and integrated into Arab and international economies.