Central Bank of Lebanon launches precautionary measures to remove Lebanon from FATF “grey list,” tightens oversight of non-banking financial institutions

The Central Bank of Lebanon (BDL) issued a statement announcing the first step in a series of precautionary measures aimed at enhancing compliance within the financial sector, as part of efforts to remove Lebanon from the Financial Action Task Force (FATF) “grey list.”

The statement noted that inclusion on the FATF grey list indicates gaps in combating illicit financial transactions, leading to increased international scrutiny and reduced confidence from global financial institutions.

As part of the new measures, BDL will impose stricter preventive procedures on all non-banking financial institutions licensed by the central bank, including money transfer companies, exchange houses, and other entities handling foreign currency transactions to and from Lebanon.

The measures are designed to prevent the flow of illegal or illicitly obtained funds through these institutions by enforcing stricter compliance requirements and enhanced due diligence for all legal and natural persons involved in cash transactions, including ultimate beneficiaries.

The central bank confirmed that additional steps will follow, targeting commercial banks to establish multiple layers of control and audit points aimed at detecting, containing, and preventing illicit funds from circulating through the banking system and financial sector network.

The Banking Control Commission will oversee the implementation of these measures and ensure full compliance by all relevant banks and non-banking financial institutions, taking corrective action as necessary.

These steps reflect Lebanon’s ongoing commitment to strengthening financial transparency and restoring international confidence in its financial sector.