Lebanon

New Documents

Lebanon’s Special Investigation Commission released its 2017 annual report, which includes information on legislation that was published in 2017, compliance examinations conducted at banks and other reporting entities, and the report provides statistical data on money laundering-related cases.

The Dubai Financial Services Authority issued a press release announcing the signing of a memorandum of understanding with the Lebanon Capital Markets Authority to enhance supervisory information sharing and cooperation.

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. Department of State labels Lebanon as a major money laundering jurisdiction. Domestically, there is a black market for cigarettes, cars, counterfeit consumer goods, pirated software, CDs, and DVDs. However, the sale of these goods does not generate significant proceeds that are laundered through the formal banking system. In addition, the domestic illicit narcotics trade is not a principal source of laundered funds.  A number of exchange houses are reportedly used to facilitate money laundering and terrorism financing, including by Hezbollah, which the United States has designated as a terrorist organization. Lebanese expatriates in Africa, the Gulf, and South America have established financial systems outside the formal financial sector, and some are reportedly involved in trade-based money laundering schemes. International trade also facilitates counter-valuation between Lebanese hawaladars.
-Source: 2018 International Narcotics Control Strategy Report (INCSR).
  • KYC covered entities:Banks, financial and lending institutions, money dealers, financial brokerage firms, leasing companies, mutual funds, insurance companies, real estate developers, promotion and sales companies, high-value goods merchants, and money remitters
  • STR covered entities:Banks, lending institutions, money dealers, financial brokerage firms, leasing companies, mutual funds, insurance companies, real estate developers, promotion and sales companies, casinos, money remitters, auditors appointed at financial institutions, high-value goods merchants, public notaries, attorneys, and accounts
  • Enhanced due diligence procedures for PEPs:Foreign:YESDomestic:NO
  • Money laundering criminal prosecutions/Convictions: Prosecutions:12: (January - October, 2015); Convictions:0
-Source: 2016 International Narcotics Control Strategy Report (INCSR).

Rankings

FATF i

Technical Effectiveness
Compliant : 4 High :
Largely Compliant : 19 Substantial :
Partially Compliant : 16 Moderate :
Non-Compliant : 10 Low :

BASEL i

Rank : 61/141
Score : 5.33/10

TRANSPARENCY INTERNATIONAL i

Rank : 137/180
Score : 28/100

Tax Justice Network i

Rank : 26/133
Score : 64/100