Lebanon added to ‘grey list’ for money laundering | Business and economic news

The global watchdog adds Lebanon to its list of countries subject to enhanced supervision of financial transactions.

A global anti-money laundering watchdog has added Lebanon to its ‘grey list’ of countries subject to enhanced supervision of financial transactions.

The Paris-based Financial Action Task Force (FATF) said Friday that Lebanon has made progress on several recommended actions and will continue to implement reforms.

Lebanon has been in a financial crisis left by the country’s leaders since 2019 and is now facing mounting damage from Israeli airstrikes and ground operations against the Lebanese armed group Hezbollah.

The gray list could potentially further deter investment in Lebanon and could affect the relationship between some Lebanese banks and the global financial system.

“Of course we recognize the extremely serious situation that Lebanon is currently facing,” said Elisa de Anda Madrazo of Mexico, who currently holds the organization’s rotating chairmanship.

Lebanon’s inclusion on the gray list “should not hinder aid delivery… and we are working to ensure that channels for humanitarian assistance remain open,” she said.

De Anda said the graylisting was not a “punitive measure” and was part of the process to help countries develop action plans to make improvements.

The FATF also said it has added Algeria, Angola and Ivory Coast to the gray list.

Senegal was removed from the gray list and the FATF noted improvements, including in its ability to investigate and prosecute money laundering cases related to corruption.

The FATF has made no changes to its “blacklist” of countries against which countermeasures should be taken to protect the international financial system against money laundering and terrorist financing risks emanating from those countries.

Iran, Myanmar and North Korea are blacklisted.