A global watchdog group has added Lebanon to its list of countries subject to increased surveillance of financial transactions.
The global anti-money laundering watchdog has added Lebanon to its “grey list” of countries subject to increased oversight of financial transactions.
The Paris-based Financial Action Task Force (FATF) announced on Friday that Lebanon has made progress on several recommended actions and will continue to implement reforms.
Lebanon has been in a financial crisis since 2019, which its leaders have ignored, but is now facing mounting damage from Israeli airstrikes and ground operations against the Lebanese militant group Hezbollah.
Greylisting could further deter investment into Lebanon and could affect the relationship of some Lebanese banks with the global financial system.
“Of course, we are aware of the extremely serious situation that Lebanon is currently facing,” said Mexico’s Elisa de Anda Madrazo, currently the organization’s rotating president.
She said Lebanon’s presence on the gray list “should not hamper relief efforts…and we are working to ensure humanitarian aid channels remain open.”
De Anda said gray listing was not a “punitive measure” but part of a process to help countries develop action plans for improvement.
The FATF also announced that it had added Algeria, Angola and Ivory Coast to its gray list.
Senegal was removed from the gray list, and the FATF noted improvements in its ability to investigate and prosecute corruption-related money laundering cases.
The FATF made no changes to its “blacklist” of countries that should take countermeasures to protect the international financial system from money laundering and terrorist financing risks.
Iran, Myanmar and North Korea are on the blacklist.
