A statement was issued by the Acting Governor of the Central Bank of Lebanon and Head of the Special Investigation Commission, Wassim Mansouri, as follows: "On December 21, 2023, the Financial Action Task Force for the Middle East and North Africa (MENAFATF) published the mutual evaluation report of the Lebanese Republic (the report) regarding measures to combat money laundering and terrorist financing, following discussions and the approval of the report at the MENAFATF plenary meeting in May 2023, and after subsequent amendments made during its plenary session held in December upon request from the Financial Action Task Force (FATF).
The report, concerning the FATF's 40 recommendations, shows that Lebanon achieved acceptable results in technical compliance, obtaining a rating of "Compliant" or "Largely Compliant" in 34 recommendations. The report noted the need for improvements in the remaining 6 recommendations, where Lebanon received a rating of "Partially Compliant," necessitating some amendments to laws and regulations.
Regarding the eleven immediate outcomes for measuring effectiveness, Lebanon attained a "Moderate" level of effectiveness in nine immediate outcomes. The Lebanese anti-money laundering and terrorist financing system yielded some positive results; however, it requires further strengthening in areas including risk assessment, international cooperation, oversight particularly in the non-financial sector and its procedures, legal entities and economic ownership arrangements, parallel financial investigations, and targeted financial sanctions related to Security Council decisions.
Lebanon received a "Low" level of effectiveness in two immediate outcomes, primarily concerning the inadequacy of asset confiscations and related proceeds, and the allegations and judicial rulings related to money laundering offenses, which should be more aligned with the risks, with a necessity for proportional and deterrent sanctions regarding them, as stated in the report.
The evaluation that Lebanon underwent, based on a methodology adopted by FATF for assessing all countries, took place under the known exceptional circumstances that are still prevailing. In any case, as is the case in all countries, there is a need for a comprehensive governmental approach to implement the necessary corrective actions by the concerned internal bodies. Therefore, the Special Investigation Commission, as the national coordinator for the evaluation process, will inform the offices of the President of the House of Representatives and the Prime Ministry of all report findings for communication with the concerned internal parties regarding the required corrective actions, aimed at enhancing the effectiveness of Lebanon's anti-money laundering and terrorist financing system, for which Lebanon will need to submit progress reports on their implementation in 2024 to MENAFATF for discussion and appropriate decision-making."
