“Based on the work to remove Lebanon from the gray list of the Financial Action Task Force (FATF), as the inclusion of any country on this list is an indication of gaps in combating illicit financial transactions, which leads to increased international scrutiny and oversight and a lower level of confidence from global financial institutions.
Banque du Liban took today its first steps within a package of preventive measures aimed at strengthening the compliance system within the financial sector. This step is represented in applying protection measures to all non-banking financial institutions licensed by it, including money transfer companies, exchange companies, and other entities that deal with cash trading and transfer operations in foreign currencies from and to Lebanon.
The statement added: “These protection measures aim to prevent the transfer of illicit or illegally obtained funds through these institutions, by imposing more stringent compliance requirements and enhanced due diligence procedures on all legal and natural persons involved in cash operations, including ultimate beneficiaries. However, there will be subsequent steps to impose additional precautionary measures on commercial banks, leading to the establishment of multiple layers of controls and audit points aimed at detecting, containing, and preventing the circulation of illicit funds through the banking system and the financial sector network.
Accordingly, the Banking Control Commission will follow up on the implementation of these procedures and the extent to which all banks and non-banking financial institutions concerned comply with them, and take the necessary corrective measures when needed.
Banque du Liban also issued a circular addressed to financial institutions, exchange companies, and those providing money transfer services.
