Lebanon granted one-year grace period to implement financial reforms and avoid gray listing

Breaking Headlines
2023-05-25 | 03:34
High views
Share
LBCI
Share
LBCI
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
Lebanon granted one-year grace period to implement financial reforms and avoid gray listing
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
3min
Lebanon granted one-year grace period to implement financial reforms and avoid gray listing

LBCI sources have revealed that Lebanon has been granted a crucial grace period of one year to implement essential financial, monetary, and banking reforms. 

This move comes as an effort to prevent Lebanon from being placed on the gray list as a non-cooperative state by The Financial Action Task Force.
 
The decision to grant Lebanon this grace period reflects the recognition of the challenges the country is currently facing in its efforts to address its financial and economic crisis.
 
The gray list, formally known as "Jurisdictions under Increased Monitoring and High-Risk Jurisdictions subject to a Call for Action," is a list maintained by the Financial Action Task Force (FATF). It comprises countries that have deficiencies in their anti-money laundering and combating the financing of terrorism (AML/CFT) frameworks. Placement on this list signifies that a country's AML/CFT measures are not in line with international standards and can have significant repercussions for its financial system.
 
Lebanon's inclusion in the gray list would have had far-reaching consequences for its economy. It could have further damaged the country's already weakened banking system, increased the cost of international transactions, limited access to global financial networks, and deterred foreign investments. Therefore, the grace period granted to Lebanon is a vital lifeline that allows the country to implement crucial reforms and avoid the potential negative consequences associated with being on the gray list.
 
“A jurisdiction that enters the ICRG review process as a result of its mutual evaluation results has a one-year Observation Period to work with the FATF or its FATF-style regional body (FSRB) to address deficiencies before possible public identification and formal review by the FATF,” according to the organization.
 
According to exclusive information from LBCI, the Financial Action Task Force (FATF) conducted an assessment of Lebanon's financial, monetary, and regulatory situation. The assessment found positive developments in seven areas, while two issues require further attention. The positive and negative aspects have not been clarified pending an official statement from the organization.

Breaking Headlines

Lebanon News

Lebanon Economy

Lebanon

Gray List

Economic

Crisis

Financial

Monetary

Banking

System

Reform

LBCI Next
Grand Mufti Derian travels to Saudi Arabia for Hajj
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use cookies to make
your experience on this
website better.
Accept
Learn More