Lebanon's Fight Against Financial 'Greylisting': Challenges and Political Pressures

A report by Bassam Abou Zeid, English adaptation by Nadine Sassine

Acting Governor of the Central Bank of Lebanon Wassim Mansouri asserts that financial movements through banks and licensed money exchange services are not currently experiencing any money laundering operations. 

The evidence for this is that the financial figures circulating in the market correspond to the estimated size of the economy, which is around $20 billion.

Remittances from expatriates are estimated at $6.7 billion, exports at $3.5 billion, tourism at $5.5 billion, and around $4 billion from other services. Moreover, banks and the Banking Control Commission are implementing measures to ensure the source of every dollar.

This situation should theoretically keep Lebanon off the Financial Action Task Force's grey list of non-cooperative countries in combating money laundering and terrorism financing. However, the state's lack of cooperation in controlling money laundering could lead to Lebanon being placed on the list.

Starting with the judiciary, it is not moving at the required speed to pursue cases suspected of money laundering and terrorism financing. The Central Bank has been unable to obtain statistics from the judiciary on how these cases have been distributed among the competent judicial authorities and their progress.

Furthermore, the Central Bank has not received any decisions related to the confiscation of property or funds connected to money laundering cases through drug trafficking.

The second issue is linked to smuggling and tax evasion. Here too, there is no serious follow-up, despite the fact that all concerned authorities are aware, for instance, that many companies pay far less than they owe in customs duties. Have efforts been made to stop this and prosecute those involved?

The third issue is the fight against corruption. Despite the size of the cases that have been opened, there have so far been no direct accusations or arrests.

The fourth and most dangerous issue is the financing of what is known as "paramilitary groups," specifically Hezbollah.

Those seeking to place Lebanon on the grey list are using the ongoing war in the south as an excuse, arguing that Hezbollah receives funding and that the state is not acting against it. These critics overlook the fact that the state does not classify Hezbollah as a terrorist organization, which many observers view as a highly political matter being leveraged against Lebanon.