Lebanon’s central bank has implemented some of the strictest financial controls in years in an effort to separate legitimate economic activity from illicit money flows and signal to the international community that the country is serious about reforming its financial sector.

The move comes amid Lebanon’s placement on the Financial Action Task Force (FATF) “gray list,” which has evolved from a technical designation into a threat to the country’s remaining financial ties with the world. Authorities have warned that failing to act could push Lebanon toward the FATF “blacklist,” which would result in near-total financial isolation.

In response, the central bank announced a package of precautionary measures targeting non-banking financial institutions, including money transfer companies, currency exchange offices, foreign currency dealers, electronic payment and transfer operators, and e-wallet providers. Under the new rules, all cash transactions of $1,000 or more must be registered and documented using the “RF1 Form” and submitted to the central bank within 48 hours via an encrypted electronic system. Compliance will be monitored by the Banking Control Commission, which can enforce corrective measures if necessary.

The measures follow a recent visit to Beirut by a delegation from the U.S. Treasury Department and counterterrorism officials, who emphasized the need for stricter oversight of currency exchange and money transfers. Deadlines for implementation were set as follows: by December 1, 2025, reporting schedules for transactions of $1,000 and above will be adopted along with client appendices for new customers; within six months, these appendices will apply to existing clients.

Sources at the central bank told Annahar that the measures are essential to prevent Lebanon from sliding into the FATF blacklist. They noted that countries with advanced financial systems, such as the UAE, already apply stricter auditing standards, including identity verification, documentation, and surveillance. Additional measures for commercial banks are expected, including tighter “Know Your Customer” (KYC) rules and enhanced scrutiny of transfers.

Financial expert Nassib Ghobril said the measures aim to remove Lebanon from the FATF gray list, where it was placed in October 2024 due to weaknesses in anti-money laundering and counterterrorism financing, largely linked to the parallel economy, tax evasion, and illicit trade. He added that the European Union also included Lebanon on its list of high-risk countries in June 2025.

Ghobril noted that Lebanese authorities have already begun implementing reforms. The central bank has issued directives regulating money transfer companies and e-wallet providers, prohibiting transactions with sanctioned entities, and enforcing KYC procedures for large transfers. He stressed, however, that full removal from the gray list requires coordinated action by the judiciary, the Ministry of Justice, security forces, the executive branch, and the Ministry of Finance.

Supporting these efforts, the Ministry of Justice has instructed notaries to reinforce compliance, while security forces have seized large quantities of contraband and shut down Captagon production facilities. FATF scrutiny focuses particularly on unregulated sectors outside the oversight of the Banking Control Commission, including unlicensed currency exchange offices, associations operating as financial institutions, and some money transfer companies exceeding their licensing scope.

Ernst & Young has estimated Lebanon’s parallel economy at roughly 20% of GDP, or about $6 billion.

Ghobril warned that Lebanon will remain on the gray list until full compliance is achieved, urging authorities to maintain coordinated efforts.

“Removing Lebanon from the FATF gray list and the EU’s high-risk list must remain a national priority,” he said.