Compliance with international regulation on AML/CFT: the case of banks in Lebanon
| DOI | https://doi.org/10.1108/13685201311318467 |
| Pages | 109-118 |
| Date | 03 May 2013 |
| Published date | 03 May 2013 |
| Author | Wassim Shahin |
| Subject Matter | Accounting & finance |
Compliance with international
regulation on AML/CFT: the case
of banks in Lebanon
Wassim Shahin
School of Business, Lebanese American University, Byblos, Lebanon
Abstract
Purpose – The purpose of this paper is to highlight and analyze the experience of banks operating in
Lebanon in their compliance with international regulation on anti-money laundering and the
counter-financing of terrorism (AML/CFT). The paper addresses the compliance policies by presenting
a case study of the experience of the Lebanese banking sector in achieving a global anti-money
laundering strategy.
Design/methodology/approach – Lebanon has been achieving its AML/CFT procedures by
following a combination of three approaches: abiding by the recommendations of the international
body in charge of regulation namely the Financial Action Task Force on the laundering of money
(FATF); cooperation among countries in the form of mutual agreements, assistance and treaties
developed by various conventions; and personal unilateral initiatives. After presenting the sources of
deposit growth in Lebanese banks and highlighting the uses of funds, the paper uses a chronological
approach to analyze the compliance of banks, central bank and legislators with international
regulations governing the financial and banking systems, and addresses the latest developments
concerning the Lebanese banks’ coordination and cooperation with international regulators and
governments, especially on FATF recommendations and international sanctions.
Findings – The paper presents evidence on the effective anti-money laundering domestic initiatives
and sheds light on the positive international regulatory assessment of these initiatives, as well as the
favorable view of the Lebanese banking sector that has kept it outside the current FATF list of
countries with AML/CFT deficiencies.
Originality/value – The value of this paper is to present a case study for bankers and regulators on
strategies to comply with AML/CFT.
Keywords Lebanon, Banks,International finance, Money laundering,Terrorism,
Internationalbanking regulation, AML/CFT, Compliance, Lebanese banking system,
FATF recommendations
Paper type Case study
I. Introduction
The present article which is motivated by the presentation in the session entitled “Fraud
and abuse – the new players in town” in the Thirtieth International Symposium on
Economic Crime at the University of Cambridge, 2012, reflects the compliance with
international regulation on anti-money laundering and the counter-financing of
terrorism (AML/CFT) by banks operating in Lebanon. The literature on AML/CFT
takes three directions. First, countries are to abide by the recommendations of the
The current issue and full text archive of this journal is available at
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JEL classification – G21, G28
The author wishes to thank, without implicating, the Association of Banks in Lebanon for
providing research support and help for the following article. The author is solely responsible for
any errors that may remain.
Journal of Money Laundering Control
Vol. 16 No. 2, 2013
pp. 109-118
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685201311318467
Compliance with
regulation
109
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