Lebanon has been placed on the "gray list" of the Financial Action Task Force (FATF), which lists jurisdictions under “enhanced scrutiny” due to shortcomings in the fight against financial crime, particularly money laundering and terrorist financing.
The decision, which had been expected for some time, was announced on Friday by the benchmark organization for banking compliance and the fight against financial crime, without taking into account clemency requests made by Lebanese officials, reports Reuters. However, the FATF indicated that Lebanon had made progress on several recommended actions and would continue its reforms.
The FATF began its regular working meetings in Paris on Monday, concluding on Friday with one of its three annual plenary sessions. A press conference was held on Friday at 5:30 p.m. Beirut time to announce the week's main conclusions.
The fact that Lebanon is back on the FATF's grey list eight years after leaving it comes as no surprise, and has been hanging over its head since a 2022 assessment highlighted the country's major shortcomings in this area. According to several banking industry sources contacted by L'Orient-Le Jour over the summer, correspondent banks dealing with Lebanese banks have already taken this into account.