Title: Lebanon’s Revamped Laws Crack Down on Money Laundering and Terrorist Financing
Lebanon has strengthened its legal framework to fight money laundering and terrorist financing with the enactment of Law no. 44 on November 24, 2015. Replacing and amending the earlier Law no. 318 from 2001, this new legislation establishes stricter measures against these illicit activities.
Criminalizing Money Laundering and Terrorist Financing
Question: Does Lebanon have legislation making it a criminal offense to engage in money laundering and/or terrorist financing?
Answer:
Yes, money laundering and terrorist financing are criminal offenses in Lebanon, as per the provisions of Law no. 44.
Application of the Legislation
Question: Who does the legislation apply to?
Answer:
The legislation applies to any person who engages in, attempts, incites, facilitates, intervenes, or participates in money-laundering or terrorist financing operations or any related activities.
Prohibited Acts and Assets
Question: What does the legislation prohibit?
Answer:
The legislation prohibits “illicit funds,” which include any assets, legal documents, or instruments linked to criminal activities, such as money laundering or terrorist financing, whether committed in Lebanon or abroad.
Definition of Money Laundering and its Thresholds
Question: How is money laundering defined in Lebanon? Do underlying criminal activities need to be proven?
Answer:
Money laundering is defined as any act aimed at concealing the source of illicit funds or providing a false explanation for their origin and transfer, transport, substitution, investment, or financial transactions to mask their illicit origins. A person can be charged with money laundering without requiring a conviction for an underlying offense.
Levels of Intent and Knowledge
Question: What level of intent or knowledge is required to establish a violation?
Answer:
A violation is established when an individual intentionally and knowingly conceals the origin of illicit funds. Lebanese law requires proof of criminal intent and motive to secure a conviction.
Penalties for Infringing the Legislation
Question: What are the potential penalties for infringing the legislation?
Answer:
Money laundering is punishable by imprisonment for three to seven years and a fine not exceeding twice the amount laundered. Terrorist financing operations are punishable by a minimum of seven years in prison with forced labor. Other related criminal activities are punishable under the Penal Code.
Extraterritorial Application
Question: Does the legislation have extra-territorial reach?
Answer:
Yes, the provisions of Law no. 44 apply to both Lebanese and foreign nationals, regardless of whether the underlying criminal activities occurred in Lebanon or abroad.
Sector-Specific Regulations
Question: Are there additional anti-money laundering (AML) or counter-terrorist financing (CTF) regulations for specific businesses or individuals?
Answer:
Certain sectors, including banks, financial institutions, and businesses dealing in real estate and valuables, must adhere to the AML/CTF regulations set by the Central Bank of Lebanon and report any suspicious transactions to the Special Investigation Commission (SIC). Failure to comply with these obligations results in a fine and/or imprisonment.
Enforcing Authorities
Question: Who are the relevant authorities enforcing these regulations in Lebanon?
Answer:
The SIC is the primary authority responsible for enforcing Lebanon’s AML/CTF regulations. Contact details for the SIC are as follows:
- Telephone: +961 175 6701
- Fax: +961 174 3999
- Email: sic@sic.gov.lb
- Postal address: P.O. Box 11-5544, Beirut, Lebanon
- Website: www.sic.gov.lb
For more information, please visit their website or contact the SIC directly.