Lebanon Faces Warnings of Grey List Inclusion Amid Struggles with Cash-Based Economy and Corruption

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

A cash-based economy is an environment that encourages money laundering and the financing of terrorism. This is the scientific conclusion reached by the annual forum on combating money laundering and terrorism financing. Speakers raised their voices to call for reducing this type of economy, which Lebanon suffers from, and whose repercussions could soon be reflected in Lebanon being placed on the Financial Action Task Force's (FATF) grey list.

The warning about the grey list at this forum was not limited to Lebanese voices but extended to Arab banks as well. To mitigate the cash-based economy, there was an emphasis on the necessity of the Lebanese banking sector regaining its strength and the trust of the people, so that money can return to this system and monetary mechanisms can be adopted to limit the cash economy. It is noteworthy that new deposits in banks have reached $3.6 billion.

During the forum, an agreement was signed between the Union of Arab Banks and the American Anti-Corruption Institute, which can be beneficial in the fight against various forms of corruption produced by the cash-based economy.

Many voices are warning of further monetary and financial repercussions, but the problem lies in the fact that those in power have yet to respond to these warnings, despite knowing that what may happen to Lebanon will not be easy to recover from.