BEIRUT: As a senior U.S. official discusses the implications of American law targeting Hezbollah’s finances with Lebanese officials, the Special Investigation Commission issued a decision Thursday prohibiting banks from freezing any account without the prior approval of the financial authorities.

“Banks, financial institutions and brokerage firms are requested not to close any account of any of its customers, or refrain from dealing with him, or refuse to open an account before 30 days of notifying the Special Investigation Commission. The notification must explain the reasons behind these measures such as information about the client and the movement and size of the account,” SIC said in the circular.

It added that in case no response came from the commission in 30 days then the banks and financial institutions can take the appropriate actions on these accounts.

But the SIC stressed that banks can freeze the accounts and transactions of individuals and companies that are blacklisted by the U.S. authorities.

The U.S. Treasury issued a list of 99 names of individuals and firms linked to Hezbollah, which Washington labels as a terrorist organization.

The SIC warned that any bank or financial institution that fails to abide by these rules will be prosecuted by the “Higher Banking Authority.”

The circular was issued as Daniel L. Glaser, U.S. assistant secretary for the Department of the Treasury, held talks with Lebanese officials and bankers to underline the importance of implementing the U.S. Act on Hezbollah’s finances and to listen to the comments of the government and Central Bank.

The U.S. law, which was passed by Congress and signed by President Barak Obama, calls on all banks in Lebanon and around the world to prohibit Hezbollah from dealing with any international currency, including the Lebanese pound.

But this law caused heated debate in the country as Hezbollah lashed out at the U.S., the Central Bank and commercial lenders, accusing them of bowing to America’s will.

However, the party toned down its verbal attack after Governor of the Central Bank Riad Salameh issued a clarification last week.

The new circular issued by the SIC Thursday was in the same spirit as Salameh’s statement.

The U.S. Embassy declined to comment on Glaser’s visit to Lebanon or explain the topics he discussed with Lebanese officials.

Sources told The Daily Star that Lebanese officials will assure Glaser that Lebanon and the banks are committed to the U.S. law but needed some clarification and explanations on certain clauses in the U.S. Act.

Among the essential points Prime Minister Tammam Salam and ministers will raise during their talks with Glaser are the implications of the law on a large segment of the society and the Shiite community in particular.

A source close to Hezbollah claims that some banks have unjustifiably frozen and rejected accounts of some social and medical institutions that are not even listed in the U.S. Treasury circular.

Lebanese officials will also try to find out if Hezbollah’s ministers and lawmakers who receive their salaries from the Finance Ministry are affected by the U.S. law.

But bankers denied Hezbollah’s allegations of targeting a certain sect in Lebanon, reiterating that the lenders are merely sticking to all the circulars issued by the Central Bank.

They emphasized that they have no interest in closing the accounts of businesses and institutions belonging to Shiite businessmen but they will surely take action on any account or transaction if they are listed by the Americans or if the movement of the accounts seems very suspicious.