Morgan Ortagus urges Lebanon to pass banking reforms to restore financial trust

In an interview with Al Arabiya English, U.S. Deputy Special Envoy to the Middle East Morgan Ortagus emphasized the urgent need for Lebanon to pass key banking reform legislation to restore public confidence in the financial sector and combat the rise of illicit financial activity.

"It's not a good position whenever people in your country can't rely on the banks, or they don't feel comfortable with the banks," Ortagus said in a statement. 

She stressed that the Lebanese Parliament must act swiftly to pass the bank secrecy law and the bank resolution legislation as part of broader economic reform.

Ortagus warned that the lack of trust in the banking system following the country's financial collapse has led to the proliferation of a cash-based economy that she said fuels corruption, enables terrorism financing, and strengthens bad actors.

"What's happened, what's proliferated since that crash, is a cash-based economy," she explained. "And because of that, you did see, unfortunately, Lebanon was gray listed at the FAFT."

Ortagus' comments highlight the growing international pressure on Lebanese lawmakers to take concrete steps toward transparency and accountability in the banking sector, which remains a key condition for unlocking vital financial aid and investments.