Lebanon Placed on FATF Grey List Amid Financial Turmoil

FATF has placed Lebanon on its grey list, highlighting concerns over financial integrity amid Lebanon's ongoing crisis. While relief efforts continue, Lebanon faces challenges including Israeli military actions and the need for financial reforms. Despite the grey listing, Lebanon's banking relationships remain stable.

The global financial watchdog, FATF, announced on Friday that Lebanon has been added to its 'grey list', a classification for countries under special scrutiny. This move underscores growing concerns over Lebanon's financial integrity amid a deepening crisis.

Since 2019, Lebanon has been entangled in a severe financial crisis. This situation has been exacerbated by recent Israeli military actions targeting Hezbollah, adding to the strain on the country's financial and humanitarian landscape. FATF President Elisa de Anda Madrazo acknowledged the extreme circumstances Lebanon faces but emphasized that its grey listing would not obstruct relief efforts.

Lebanon's caretaker Prime Minister, Najib Mikati, indicated that despite the grey listing, progress has been made in implementing recommended actions. He assured that Lebanon's banking relationships would remain intact, though the classification could hinder future investments. The FATF has extended Lebanon's deadline to address these financial integrity issues till 2026.

(With inputs from agencies.)