Lebanon under scrutiny

During a visit to Washington aimed at securing a reprieve for Lebanon, which faces the risk of being placed back on the Financial Action Task Force (FATF) watchlist this fall, Interim Governor of the Central Bank of Lebanon (BDL) Wassim Mansouri described his meetings with U.S. officials as "positive."

In a statement released by local media, Mansouri highlighted the constructive nature of his discussions with officials from the U.S. Departments of State and Treasury, as well as the International Monetary Fund (IMF). 

These talks are focused on preventing Lebanon's inclusion on the FATF’s grey list. "But the outcomes depend on what will be achieved," he added.

Mansouri further commented, "Placing Lebanon on the grey list at this stage does not align with the logic of encouraging the country to take measures to move away from a cash economy, especially since the FATF is well aware of the efforts made by the Central Bank and the banking sector to curb this trend and combat money laundering and terrorist financing."

The FATF, an international financial crime watchdog, has been considering putting Lebanon back on the grey list for over a year. This follows a 2023 evaluation that deemed the country's efforts in combating money laundering and terrorist financing insufficient. 

In June 2023, Lebanon was granted a one-year extension to make necessary improvements. However, according to an interim report from the FATF's regional branch for the MENA zone dated March, which we have reviewed, the identified gaps have not been adequately addressed, making a grey listing likely at the next FATF plenary meeting in October.

Being placed on the grey list would have significant repercussions for Lebanon, affecting its financial stability and international reputation. 

The interim governor’s meetings in Washington represent a critical effort to avert this outcome and to demonstrate Lebanon’s commitment to financial reforms and compliance with international standards.