Lebanon's Central Bank Takes Bold Steps Against Financial Malfeasance

Karim Souaid, Lebanon's new central bank governor, aims to combat money laundering and terrorist financing as part of efforts to stabilize the banking sector. Following Lebanon's placement on a global watchdog's 'grey list,' Souaid prioritizes transparency, capital improvements, and safeguarding the bank’s independence from political pressure.

In a pivotal declaration, Lebanon's newly appointed central bank governor, Karim Souaid, vowed to crack down on money laundering and terrorist financing as he embarked on his mission to stabilize the nation's banking sector. This commitment comes as Lebanon strives to escape the Financial Action Task Force's 'grey list' of countries under close scrutiny.

Souaid defined his primary objectives during his recent assumption of duties, highlighting the need to combat financial crimes and emphasize transparency. Replacing interim chief Wassim Mansouri, Souaid steps into a role fraught with challenges following Lebanon's 2019 financial collapse and subsequent losses totaling an estimated $72 billion.

In a pointed message, Souaid stressed the importance of maintaining the central bank's independence from political influences. He also urged private banks to raise their capital or merge with other institutions, promising to dissolve those that fail to comply while securing depositors' rights and ensuring the bank operates with integrity and transparency.

(With inputs from agencies.)