MANAMA, Bahrain - The Bahrain Monetary Authority is protesting the U.S. Treasury Department's freezing of the U.S. assets of Arab Financial Services.
The Treasury said last week that Arab Financial Services is sufficiently controlled or influenced by Libya to justify being placed on its list of specially designated Libyan nationals. The company is the Middle East's largest issuer of Visa credit cards and a major issuer of travelers checks. North American assets totaled $79 million, according to the 1992 annual report.
The U.S. agency said "60% of the shares of Arab Financial Services are owned by Libyan-controlled or influenced institutions."
The Bahrain Monetary Authority claimed the U.S. action, which bars U.S. nationals or corporations from dealing with the company, was unjustified. It said the Libyan government owned only 11.26% of the shares, and the Libyans on the board and executive committee do not control the enterprise.
