Financial Crime World

AML Guidelines for Small Businesses in Lebanon: A Report by SEEDS for Legal Initiatives

Introduction

Published in September 2022, a new report by ICNL partner SEEDS for Legal Initiatives provides an overview of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) and Non-Profit Organization (NPO) regulations in Lebanon. The report aims to help countries and NPOs implement effective measures to combat money laundering and terrorist financing while maintaining association rights.

AML/CFT Regulations in Lebanon

The report offers a comprehensive look at AML/CFT regulations in Lebanon, including the country’s efforts to comply with international standards. It provides an analysis of FATF Recommendation 8, which calls on countries to ensure that their legal frameworks effectively prevent the use of their jurisdictions for money laundering and terrorist financing.

Best Practices for Small Businesses

The report highlights best practices for small businesses in Lebanon to implement effective AML/CFT measures while maintaining their association rights. These best practices include:

  • Establishing a risk-based approach to customer due diligence: This involves identifying and assessing the risks associated with customers, including individuals and entities.
  • Monitoring transactions for suspicious activities: Small businesses should monitor transactions regularly for signs of suspicious activity, such as unusual or large transactions.
  • Implementing robust internal controls: Establishing strong internal controls can help prevent money laundering and terrorist financing.

Accessible Report

The report is available in both Arabic and English, making it accessible to a wide range of stakeholders in Lebanon, including small businesses, NPOs, and government officials. It provides valuable insights and practical guidance for those looking to comply with AML/CFT regulations and maintain their association rights while contributing to the fight against money laundering and terrorist financing.

Conclusion

The report by SEEDS for Legal Initiatives is an essential resource for small businesses in Lebanon seeking to implement effective AML/CFT measures. By following the best practices outlined in the report, small businesses can help combat money laundering and terrorist financing while maintaining their association rights.