Investigation Uncovers Suspicious Transactions at Local Bank

Background

A recent investigation by the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) department at Banque du Liban et d’Outre-Mer (BLOM) has revealed a number of suspicious transactions that warrant further review.

Investigation Methodology

According to sources, any transaction that does not fit within a customer’s usual business activities or profile is subject to scrutiny. This includes: * Unusual activities * Screening matches against global and local sanctions lists * Reports from internal hotlines and whistleblowers

The investigation was conducted in accordance with applicable laws and regulations.

Findings

The investigation uncovered several instances of suspicious activity that may be linked to money laundering and terrorism financing (ML/TF).

Measures Taken by BLOM

As a result, BLOM has decided to take additional measures to prevent further suspicious activity. These measures include: * Aborting financial transactions * Refraining from establishing new relationships with clients who have been deemed high-risk * Implementing enhanced due diligence (EDD) procedures

High-Risk Customers Face Enhanced Scrutiny

The investigation also highlighted the need for increased vigilance when dealing with high-risk customers, including: * Public officials * Lawyers * Notaries * Non-resident customers * Brokers * Car dealers * Others who may be more susceptible to ML/TF

BLOM has established a list of high-risk customers, which includes individuals and entities that are deemed to pose a higher risk due to their legal form, type of business, or other factors. These customers are subject to: + Enhanced screening procedures + Ongoing monitoring measures to ensure compliance with AML/CFT regulations

PEPs Face Highest Level of Scrutiny

Public officials who hold prominent positions in government-owned resources are considered high-risk customers and are subject to the highest level of scrutiny. BLOM has established a set of policies and procedures for conducting business with PEPs, which includes: + Enhanced due diligence measures + Ongoing monitoring + Regular reviews

Transparency and Cooperation

The investigation has also highlighted the need for increased transparency and cooperation between financial institutions and regulatory bodies in the fight against ML/TF.

Reporting and Investigation

Once finalized, all investigations will be examined by the Head of Group Compliance Division, escalated to the Chairman/GM, and reported to the Board Compliance Committee. Suspicious customers or accounts will be reported to the relevant authorities as required by law and regulation.

Conclusion

BLOM’s investigation has uncovered several instances of suspicious activity that warrant further review and action. The bank is committed to ensuring compliance with AML/CFT regulations and protecting its customers from the risks associated with ML/TF.