What landmark statute enacted in 1956 became the cornerstone of Lebanon's banking sector growth by legally guaranteeing account confidentiality?
Answer and explanation
Correct answer: C. The Banking Secrecy Law of September 3, 1956
- Step 1: Authored under the sponsorship of Raymond Eddé, the 1956 Banking Secrecy Law strictly prohibited banks from revealing client identities or accounts to courts or tax authorities.
- Step 2: This law transformed Beirut into the financial and wealth management capital of the Middle East throughout the 1960s and 1970s.
Answer
The Banking Secrecy Law of September 3, 1956.
Why not the others: 'The Code of Commerce of 1942' governs general corporate entities; 'The Capital Control Act' was never passed; 'The Money Laundering Act of 2001' (Law 318) created AML oversight.
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