Lebanon at risk of Gray listing: FATF report highlights financial weaknesses

This month, the International Financial Action Task Force (FATF) is set to release a report encompassing all the weaknesses plaguing Lebanon's financial system.

These weaknesses require immediate attention and demand the collaboration of all authorities to address the gaps that have pushed the country towards the gray list, which serves as a waiting room before a decision is made: either to exit the list or descend into the blacklist, resulting in immediate isolation from global financial markets, including transactions and cooperation with correspondent banks.

A banking source clarified to LBCI that Lebanon's exclusion from the gray list came after the FATF determined that the compliance standards in Lebanese banks are high and professional, surpassing those of banking sectors in the Arab region. The process of investigating the source of funds is conducted in accordance with internationally recognized standards.

Additionally, the credibility of the work carried out by the anti-money laundering and counter-terrorism financing agency has been highly regarded by the committee that assessed Lebanon's situation over several months.

The banking source further emphasized that it remains the responsibility of political officials to fulfill their duties and take immediate action to address the weaknesses in the financial system once the FATF releases the final report. There should be no room for presenting weak excuses to avoid complying with the required measures, whether at the executive, legislative, or judicial level.