10/25/2024–|Last updated: 10/25/202402:54 PM (Mecca time)
Lebanon has been included on the gray list of countries subject to special scrutiny by the Financial Action Task Force (FATF), which is concerned with combating financial crimes, and an official announcement in this regard is expected to be made later today, Friday, according to Reuters, citing a spokesman for the Central Bank of Lebanon and another on behalf of the FATF Group. .
The FATF gray list includes countries that suffer from deficiencies in combating money laundering and terrorist financing, but are working to improve their situations in cooperation with the group.
The inclusion of Lebanon on this list is a step that has negative implications for its financial and economic situation, as it may lead to additional restrictions on financial transactions with international banks, and increase the financial costs of Lebanese institutions abroad.
The listing decision came due to the weakness of Lebanese procedures in monitoring financial activities and combating corruption. Lebanon may have to take serious steps to reform the financial system and combat corruption to improve its reputation and restore international confidence in its banking and economic sector.
Lebanon has been suffering from a financial crisis since 2019, which the country’s senior officials allowed to worsen, and is now facing increasing damage as a result of the ongoing Israeli aggression against the country.
One source told Reuters that the war prompted the FATF to give Lebanon until 2026 instead of 2025 to address the issues that led to its inclusion on the gray list, including concerns related to terrorist financing and the lack of judicial independence.
Placing Lebanon on the gray list is likely to further deter investment, and may affect the relationship between some Lebanese banks and the global financial system.
