The Banque du Liban (BDL) announced on Friday the introduction of a series of precautionary measures aimed at tightening Lebanon’s financial compliance framework as the country works to remove itself from the Financial Action Task Force (FATF) grey list.

In a statement, the central bank said the move comes “in the effort to remove Lebanon from the grey list,” noting that inclusion on the list signals “gaps in combating illicit financial activities,” which in turn triggers stricter international monitoring and erodes confidence among global financial institutions.

BDL said it has taken “the first step in a series of precautionary measures” designed to reinforce compliance practices across the financial sector. The initial phase targets non-bank financial institutions licensed by the central bank, including money-transfer operators, currency-exchange companies, and other entities that handle foreign-currency cash transactions or facilitate transfers into and out of Lebanon.

According to the statement, the new protective rules aim to “prevent the movement of illicit or unlawfully obtained funds” through these institutions. They do so by requiring “more stringent compliance requirements and enhanced due-diligence procedures” for all individuals and legal entities involved in cash operations, including the identification and scrutiny of ultimate beneficial owners.

The central bank emphasized that the latest measures are only the beginning.

“Further steps will follow” to introduce additional safeguards on commercial banks, BDL said, adding that the goal is to establish “multiple layers of controls and checkpoints” capable of detecting, containing, and blocking the flow of illicit funds throughout Lebanon’s banking system and the broader financial network.

The Banking Control Commission of Lebanon will oversee implementation. According to the statement, the commission will monitor compliance across all affected banks and non-bank financial institutions and “take corrective action when necessary.”