Financial Crime World

Title: Lebanon’s Financial Crimes: Middle East Task Force Evaluates AML/CFT Measures in Latest Report

Subtitle: The Republic of Lebanon Faces Challenges in Anti-Money Laundering and Counter-Terrorist Financing Compliance

The [Middle East North Africa (MENA)] region’s Financial Action Task Force (FATF) has published the Mutual Evaluation Report for the Republic of Lebanon, focusing on the country’s progress and challenges in combating money laundering and counter-terrorist financing (ML/CTF).

Key Findings of the Mutual Evaluation Report for Lebanon

Executive Summary

The report evaluates Lebanon’s compliance with the FATF 40 Recommendations and assesses the overall effectiveness of the AML/CFT system. The document provides several recommendations to enhance Lebanon’s financial crime prevention efforts.

Key Findings

  • Identification of ML/TF Risks: Lebanon conducted a thorough national ML/TF risk assessment, but there are gaps in understanding risks related to unregulated financial sectors, paramilitary organizations, and senior-level government corruption.
  • Understanding of ML/TF Risks: Competent authorities in Lebanon have mixed levels of understanding of ML/TF risks, with financial institutions being more knowledgeable than other entities. Limited financial intelligence usage in ML investigations creates further challenges.
  • Assets Confiscation: Despite a good legal framework for confiscating criminal proceeds, Lebanon has yet to demonstrate a consistent approach to freezing, seizing, and confiscating assets. Additionally, priorities for asset recovery and dealing with assets held in other jurisdictions have yet to be clearly defined.
  • Terrorist Financing: Effective measures against terrorist financing (TF) activities are in place, though investigations into potential threats from paramilitary organizations have been overlooked.
  • UNSCRs and Targeted Financial Sanctions: The understanding of UNSCRs and targeted financial sanctions related to proliferation remains insufficient, particularly among designated non-financial businesses and professions (DNFBPs) who are not aware of their obligations.

Next Steps and Recommendations

The report offers several recommendations to enhance Lebanon’s AML/CFT measures, including:

  • Assessing risks and applying a risk-based approach.
  • Strengthening national coordination and cooperation.
  • Updating ML/TF risk assessments.
  • Ensuring the consistent implementation of targeted financial sanctions.

Implementing these recommendations will help Lebanon address its financial crime challenges and move towards FATF compliance.