The acting governor of Lebanon’s central bank, Wassim Mansouri, headed to Washington to meet with several financial officials to secure a new reprieve for Lebanon which faces the risk of being placed back on the Financial Action Task Force (FATF) watchlist in the fall.

Sources at the central bank told L’Orient-Le Jour that Mansouri will hold “crucial” meetings with US Treasury officials as well as representatives from the International Monetary Fund (IMF) and the World Bank before returning to Beirut on July 15.

For over a year, FATF, the international body that monitors financial crime, has been considering adding Lebanon back to its "grey list" following a 2023 assessment that found the country's efforts against money laundering and terrorist financing lacking. In June 2023, Lebanon received a one-year extension to improve its measures. However, an interim report from FATF's Middle East and North Africa regional office, seen by L'Orient-Le Jour, indicated that many deficiencies remain unaddressed, making a downgrade to the grey list likely at the next FATF plenary meeting in October.

If Lebanon is placed back on the grey list, banking compliance procedures between Lebanese banks and their foreign correspondents will become more stringent.

However, a source at the central bank assured L'Orient-Le Jour that, even in the worst-case scenario, changes would be minimal since correspondent banks have already tightened procedures since June 2023 due to the looming downgrading risk. Nevertheless, the situation remains uncertain.