BDL on alert: Anti-money laundering measures intensified to avoid FAFT's grey list

Report by Bassam Abou Zeid, English adaptation by Yasmine Jaroudi

The Special Investigation Commission (SIC) at the Banque du Liban (BDL) is focusing on pursuing cases related to money laundering and combating terrorist financing in collaboration with the banking sector. 

In 2023, the SIC recorded suspicions in 527 cases, leading the Lebanese judiciary to lift banking secrecy on 96 of them.

By highlighting these figures, BDL aims to reassure international financial regulatory bodies that it and Lebanese banks continue to take measures to combat money laundering and terrorist financing. 

However, the problem lies in the fact that the suspected accounts and those from which banking secrecy has been lifted are in US dollars and date back to before October 17, 2019. 

Consequently, they have now converted to "lollars," meaning they have lost their actual value, or their holders have withdrawn them through checks sold at varying values.

While international financial regulatory bodies view BDL's and banks' actions as a positive step, they also believe that the current cash economy is a hotbed for money laundering and terrorist financing. The funds passing through banks now represent only a small percentage of what is in circulation. 

Moreover, successive authorities have not taken any measures to curb this economy, leaving no plan for recovery, banking sector restructuring, reforms, or anti-corruption efforts. This situation threatens to place Lebanon on the Financial Action Task Force (FATF) grey list.

BDL's acting governor, Wassim Mansouri, is aware of this reality, especially with negative indicators suggesting the likelihood of Lebanon being added to this list. 

As a result, he has intensified his efforts to avoid any repercussions. He is scheduled to meet with representatives of correspondent banks in London early next month to ensure continued cooperation with Lebanese banks, even if Lebanon is placed on the grey list.