Lebanon Country Summary

FATF Status

Lebanon is on the FATF list of countries identified as having substantial money laundering and terrorist financing (ML/TF) risks or having strategic AML/CFT deficiencies.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Lebanon was undertaken in 2023. According to that Evaluation, Lebanon was deemed Compliant for 9 and Largely Compliant for 25 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Lebanon is facing significant challenges related to crime and corruption, exacerbated by political instability and economic decline. Corruption remains pervasive, with ineffective implementation of anti-corruption laws and a judicial system hindered by political interference and resource shortages, while organized crime is deeply intertwined with political entities, particularly Hezbollah, which exerts control over various illicit markets.

The country also grapples with a range of criminal activities, including human trafficking, drug production, and financial crimes, which are compounded by a lack of effective governance and law enforcement. Despite these challenges, civil society organizations are actively working to address issues of corruption and support victims, although they often operate with limited state backing and face restrictions on press freedom and expression.

As of April 2025, Lebanon's economy remains severely impacted by the ongoing crisis that began in late 2019, exacerbated by recent conflicts with Israel, which resulted in an estimated $14 billion in damages. Despite a notable GDP growth of 19.8% in 2024, the economy is still operating at 40% below pre-crisis levels, with a significant increase in poverty rates affecting nearly half the population. The political landscape has seen some stabilization following the election of a new president and government in early 2025, which may provide a foundation for implementing necessary economic reforms and attracting foreign investment, although challenges such as political paralysis and a struggling banking sector persist.