Lebanon, still on the Financial Action Task Force’s grey list, remained under intense international financial scrutiny. To avoid blacklisting, the authorities were required to demonstrate credible enforcement of anti-money-laundering and counter-terrorism financing standards. In response, the central bank issued a Know Your Customer (KYC) circular obliging exchange houses and similar businesses to identify clients and report cash transactions of $1,000 or more.

LIMS argued that the measure addressed a genuine problem. The post-crisis shift towards a cash-based economy has obscured money flows, heightened criminal and reputational risks, and further detached Lebanon from global finance. Strengthening AML/CFT compliance, LIMS said, is essential if Lebanon is to exit the FATF grey list and draw economic activity back into the formal system.
 
LIMS cautioned, however, against overstating what compliance alone can achieve. Policing unregulated cash transactions is likely to have only a limited effect. A more effective approach would be to encourage transactions to move voluntarily away from cash and back into a compliant banking system. This would require restoring a functioning financial sector by resolving the financial gap and reopening banks to deposits and lending. Otherwise, stricter KYC rules risk becoming a box-ticking exercise rather than a catalyst for reintegration into global markets.

• Lebanon on the Grey List: Will a “Know Your Customer” Form Save It from International Isolation? December 19, 2025: Alhurra, Video Interview (AR)