BEIRUT: Lebanon’s acting central bank governor said on Thursday that his institution was still striving to prevent being placed on a “grey list” of countries under special scrutiny by a financial crime watchdog.
Being added to the Financial Action Task Force’s grey list would be another major blow to a country in financial tailspin since 2019, with depositors still locked out of most of their pre-crisis savings and many foreign corresponding banks shunning Lebanon’s financial system.
Reuters first reported in May 2023 that Lebanon had received a preliminary evaluation warranting grey-listing, with gaps in several categories including its anti-money laundering measures, transparency on beneficial ownership of firms and legal assistance in asset freezing and confiscation.
After the initial assessment, Lebanon was granted a year to address those gaps before a final ruling that is set to be announced at the FATF’s plenary in October of this year.
“The Financial Action Task Force (FATF) will issue a decision this coming fall and we are still working hard to prevent Lebanon from being placed on the grey list,” acting central bank governor Wissam Mansouri said, addressing a meeting of the Union of Arab Banks in Beirut.
Mansouri said Lebanon had received low scores on measures to confiscate illicit wealth or address money laundering, and that the country needed to develop an action plan to address the remaining gaps.
In 2023, a diplomatic source and a financial source familiar with the matter said that the central bank’s special investigations commission was lobbying FATF member states in a bid to change the score.
Being put on the FATF grey list could disrupt a country’s capital flows, according to the International Monetary Fund, with banks cutting ties to customers in high-risk countries to reduce compliance costs.
Such a listing also risks reputational damage, credit ratings adjustments, trouble obtaining global finance and higher transaction costs.
In Lebanon’s case, the listing would represent an indictment of the financial system at a painful time. The country has been slow to make progress on key reforms requested by the IMF in April 2022 as prerequisites for a deal with the fund. The economy has slowed further after more than 10 months of hostilities between armed group Hezbollah and the Israeli military in parallel with the Gaza war.
Lebanon central bank governor says ‘working hard’ to prevent grey-listing
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Lebanon central bank governor says ‘working hard’ to prevent grey-listing
- Being added to the Financial Action Task Force’s grey list would be another major blow to a country in financial tailspin since 2019
First Ramadan after truce brings flicker of joy in devastated Gaza
- Ramadan lanterns and string lights appear on streets lined with collapsed buildings and piles of rubble in Gaza City
- The first holy month since the October ceasefire brings mixed feelings for the many still living in tents
GAZA CITY: Little Ramadan lanterns and string lights appeared on streets lined with collapsed buildings and piles of rubble in Gaza City, bringing joy and respite as Islam’s holiest month began — the first since October’s ceasefire.
In the Omari mosque, dozens of worshippers performed the first Ramadan morning prayer, fajr, bare feet on the carpet but donning heavy jackets to stave off the winter cold.
“Despite the occupation, the destruction of mosques and schools, and the demolition of our homes... we came in spite of these harsh conditions,” Abu Adam, a resident of Gaza City who came to pray, told AFP.
“Even last night, when the area was targeted, we remained determined to head to the mosque to worship God,” he said.
A security source in Gaza told AFP Wednesday that artillery shelling targeted the eastern parts of Gaza City that morning.
The source added that artillery shelling also targeted a refugee camp in central Gaza.
Israel does not allow international journalists to enter the Gaza Strip, preventing AFP and other news organizations from independently verifying casualty figures.
‘Stifled joy’
In Gaza’s south, tens of thousands of people still live in tents and makeshift shelters as they wait for the territory’s reconstruction after a US-brokered ceasefire took hold in October.
Nivin Ahmed, who lives in a tent in the area known as Al-Mawasi, told AFP this first Ramadan without war brought “mixed and varied feelings.”
“The joy is stifled. We miss people who were martyred, are still missing, detained, or even traveled,” she said.
“The Ramadan table used to be full of the most delicious dishes and bring together all our loved ones,” the 50-year-old said.
“Today, I can barely prepare a main dish and a side dish. Everything is expensive. I can’t invite anyone for Iftar or suhoor,” she said, referring to the meals eaten before and after the daily fast of Ramadan.
Despite the ceasefire, shortages remain in Gaza, whose battered economy and material damage have rendered most residents at least partly dependent on humanitarian aid for their basic needs.
But with all entries into the tiny territory under Israeli control, not enough goods are able to enter to bring prices down, according to the United Nations and aid groups.
‘Still special’
Maha Fathi, 37, was displaced from Gaza City and lives in a tent west of the city.
“Despite all the destruction and suffering in Gaza, Ramadan is still special,” she told AFP.
“People have begun to empathize with each other’s suffering again after everyone was preoccupied with themselves during the war.”
She said that her family and neighbors were able to share moments of joy as they prepared food for suhoor and set up Ramadan decorations.
“Everyone longs for the atmosphere of Ramadan. Seeing the decorations and the activity in the markets fills us with hope for a return to stability,” she added.
On the beach at central Gaza’s Deir el-Balah, Palestinian artist Yazeed Abu Jarad contributed to the holiday spirit with his art.
In the sand near the Mediterranean Sea, he sculpted “Welcome Ramadan” in ornate Arabic calligraphy, under the curious eye of children from a nearby tent camp.
Nearly all of Gaza’s 2.2 million residents were displaced at least once during the more than two years of war between Israel and Hamas, sparked by the latter’s unprecedented October 7 attack on Israel.
Mohammed Al-Madhoun, 43, also lives in a tent west of Gaza City, and hoped for brighter days ahead.
“I hope this is the last Ramadan we spend in tents. I feel helpless in front of my children when they ask me to buy lanterns and dream of an Iftar table with all their favorite foods.”
“We try to find joy despite everything,” he said, describing his first Ramadan night out with the neighbors, eating the pre-fast meal and praying.
“The children were as if they were on a picnic,” he said.
In the Omari mosque, dozens of worshippers performed the first Ramadan morning prayer, fajr, bare feet on the carpet but donning heavy jackets to stave off the winter cold.
“Despite the occupation, the destruction of mosques and schools, and the demolition of our homes... we came in spite of these harsh conditions,” Abu Adam, a resident of Gaza City who came to pray, told AFP.
“Even last night, when the area was targeted, we remained determined to head to the mosque to worship God,” he said.
A security source in Gaza told AFP Wednesday that artillery shelling targeted the eastern parts of Gaza City that morning.
The source added that artillery shelling also targeted a refugee camp in central Gaza.
Israel does not allow international journalists to enter the Gaza Strip, preventing AFP and other news organizations from independently verifying casualty figures.
‘Stifled joy’
In Gaza’s south, tens of thousands of people still live in tents and makeshift shelters as they wait for the territory’s reconstruction after a US-brokered ceasefire took hold in October.
Nivin Ahmed, who lives in a tent in the area known as Al-Mawasi, told AFP this first Ramadan without war brought “mixed and varied feelings.”
“The joy is stifled. We miss people who were martyred, are still missing, detained, or even traveled,” she said.
“The Ramadan table used to be full of the most delicious dishes and bring together all our loved ones,” the 50-year-old said.
“Today, I can barely prepare a main dish and a side dish. Everything is expensive. I can’t invite anyone for Iftar or suhoor,” she said, referring to the meals eaten before and after the daily fast of Ramadan.
Despite the ceasefire, shortages remain in Gaza, whose battered economy and material damage have rendered most residents at least partly dependent on humanitarian aid for their basic needs.
But with all entries into the tiny territory under Israeli control, not enough goods are able to enter to bring prices down, according to the United Nations and aid groups.
‘Still special’
Maha Fathi, 37, was displaced from Gaza City and lives in a tent west of the city.
“Despite all the destruction and suffering in Gaza, Ramadan is still special,” she told AFP.
“People have begun to empathize with each other’s suffering again after everyone was preoccupied with themselves during the war.”
She said that her family and neighbors were able to share moments of joy as they prepared food for suhoor and set up Ramadan decorations.
“Everyone longs for the atmosphere of Ramadan. Seeing the decorations and the activity in the markets fills us with hope for a return to stability,” she added.
On the beach at central Gaza’s Deir el-Balah, Palestinian artist Yazeed Abu Jarad contributed to the holiday spirit with his art.
In the sand near the Mediterranean Sea, he sculpted “Welcome Ramadan” in ornate Arabic calligraphy, under the curious eye of children from a nearby tent camp.
Nearly all of Gaza’s 2.2 million residents were displaced at least once during the more than two years of war between Israel and Hamas, sparked by the latter’s unprecedented October 7 attack on Israel.
Mohammed Al-Madhoun, 43, also lives in a tent west of Gaza City, and hoped for brighter days ahead.
“I hope this is the last Ramadan we spend in tents. I feel helpless in front of my children when they ask me to buy lanterns and dream of an Iftar table with all their favorite foods.”
“We try to find joy despite everything,” he said, describing his first Ramadan night out with the neighbors, eating the pre-fast meal and praying.
“The children were as if they were on a picnic,” he said.
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