Global anti-money laundering watchdog adds Lebanon to ‘gray list’

Global anti-money laundering watchdog FATF on Friday added Lebanon, which is currently being pummeled by Israeli airstrikes targeting Hezbollah, to its “gray list” of nations that are subject to increased monitoring of financial transactions.

The Paris-based Financial Action Task Force said it also added Algeria, Angola and Ivory Coast.

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

Lebanon’s being put on the gray list “should not impede relief efforts… and we are working to ensure that channels of humanitarian aid remain open,” she added.

De Anda said that being put on the gray list was not a “punitive measure” and was part of the process of helping nations develop action plans to make improvements.

“I can tell you that there was a degree of flexibility granted to Lebanon as it relates to the deadlines set in the action plan,” she said.

Lebanese Prime Minister Najib Mikati said the gray-listing was “expected, considering the known circumstances which hindered the establishment of the required legislation and financial reforms.”

Lebanon since late 2019 has been enduring a crushing economic collapse that the World Bank has called one of the worst in recent history, and which has hampered the work of public services and institutions.

Political deadlock between allies of Hezbollah — an Iran-backed terror group that has been locked in all-out war with Israel since last month — and the movement’s opponents has also left the country without a president for almost two years.

“Lebanon’s relations with correspondent banks will not be impacted” by the classification, Mikati said, according to a statement issued by his office.

“Lebanon will continue to cooperate” with the FATF and will follow up on the move “in order to have it reversed,” he added.

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

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

Iran, Myanmar and North Korea are on the black list.

Times of Israel staff contributed to this report.