LEBANON TAKES A MAJOR STEP FORWARD IN COMBATING FINANCIAL CRIME

A New Era of Cooperation in Combating Financial Crime

On March 5, 2021, the Capital Markets Authority (CMA) and the Special Investigation Commission (SIC) signed a Memorandum of Understanding (MoU), marking a significant milestone in Lebanon’s efforts to combat financial crime.

A Commitment to Preserving Financial Sector Integrity

The MoU between the CMA and SIC is aimed at preserving the integrity and stability of Lebanon’s financial sector by combating money laundering, terrorist financing, and related crimes. This collaboration demonstrates the country’s commitment to international standards and cooperation in tackling global financial crime.

Key Components of the Agreement

The terms of the agreement include:

• Information Exchange: The CMA and SIC will establish frameworks for exchanging information and coordinating efforts to prevent and investigate financial crime.
• Intelligence Sharing: Procedures for sharing intelligence and best practices will be set out, aligning with each institution’s policies and procedures.
• International Cooperation: The collaboration is expected to strengthen international cooperation with foreign regulatory bodies working to combat global financial crime.

Far-Reaching Implications

This development is anticipated to have significant implications for Lebanon’s financial sector, including:

• Enhanced Reputation: Increased credibility on the global stage will attract investors and contribute to economic growth.
• Improved Detection and Prevention: Enhanced collaboration between the CMA and SIC will enable better detection and prevention of financial crimes, contributing to economic stability and growth.