Banque du Liban (BDL) issued a statement announcing the rollout of new precautionary measures aimed at strengthening Lebanon’s compliance framework as part of the country’s efforts to exit the Financial Action Task Force (FATF) grey list. Placement on this list signals that a country has deficiencies in combating illicit financial activity, resulting in heightened international scrutiny and reduced confidence from global financial institutions.
According to the statement, BDL has taken the first step in a broader set of actions designed to reinforce compliance across the financial sector.
This initial measure imposes preventive requirements on all non-bank financial institutions licensed by BDL, including money transfer companies, currency exchange firms, and other entities involved in foreign-currency cash transactions and transfers into and out of Lebanon.
These safeguards are intended to block the movement of illegal or improperly acquired funds through such institutions. They introduce stricter compliance obligations and enhanced due-diligence procedures for all legal and natural persons involved in cash operations, with a particular focus on identifying ultimate beneficial owners.
BDL added that additional precautionary steps will soon target commercial banks, creating multiple layers of oversight and control designed to detect, contain, and prevent illicit funds from circulating within the banking system and the wider financial sector.
The Banking Control Commission will be responsible for monitoring compliance with these measures across all banks and licensed non-bank institutions, and will take corrective action when necessary.
BDL also issued a new circular directed to financial institutions, money exchange companies, and entities offering money transfer services, outlining the specific obligations required under these strengthened compliance standards.
