In November, multiple U.S. Treasury delegations met with Lebanese officials and shared detailed evidence of illicit financial activity linked to sanctioned actors. In response, Banque du Liban (BDL) announced expanded enforcement measures targeting non-bank financial institutions, including money transfer companies, exchange houses, digital wallets, and correspondent banking relationships.

The new measures require “Know Your Customer” (KYC) procedures for all transfers exceeding $1,000, prohibit dealings with sanctioned entities such as Hezbollah-affiliated Al-Qard Al-Hasan, and tighten oversight of non-bank financial intermediaries. These steps come as Lebanon faces mounting international scrutiny over money laundering risks and remains on both the Financial Action Task Force (FATF) grey list and the EU’s high-risk jurisdictions list.
 
LIMS argued that Lebanon cannot effectively combat money laundering as long as the bulk of financial activity remains outside a functioning banking system. According to LIMS, regulatory tightening alone will not succeed without restoring trust in formal financial institutions.  LIMS emphasized the need to separate viable banks from insolvent ones, close non-functional institutions, and allow new banks to enter the market. Only a credible banking sector can draw transactions back into regulated channels and reduce reliance on cash.
 
LIMS stressed that the central bank’s circulars are insufficient without strict enforcement, monitoring, and prosecution, including against politically connected actors. Weak enforcement, customs fraud, tax evasion, and limited judicial action continue to undermine compliance.
 
LIMS stressed that progress on AML enforcement is essential not only to exit the FATF grey list, but also to restore correspondent banking ties, revive trade and tourism, and rebuild economic relations with Saudi Arabia and other regional partners. Without concrete enforcement and banking reform, Lebanon risks deeper financial isolation despite tighter regulations.

• The Ghost Of The Blacklist Threatens Lebanon, November 4, 2025: Lebanon Debate, Article (AR)
• The Central Bank Of Lebanon Moves To Cut The Lifeline Of “Irregular Funds” And Remove The Country From The Grey List, November 14, 2025: Al-Hadath, Video Interview (AR)
• Documents Revealed About “Illegal” Money Transfers… No Exit From Grey List, November 21, 2025: Lebanon Debate, Article (AR)
• Is Lebanon Approaching The Moment Of Falling Off The Grey List After Presenting The Most Dangerous Transfer Files? November 21, 2025: Asia News LB, Article (AR)
• Bank Restructuring Froze The Agreement With The International Monetary Fund, November 27, 2025: Lebanon Debate, Article (AR)