Lebanon and Algeria placed on financial crimes watchlist

Lebanon and Algeria have both been placed on financial crime watchdog Financial Action Task Force’s “grey list,” according to the Arab Weekly and agencies.

The addition of the two counties, which was announced on October 25th, sees them join a list of countries under special scrutiny. Senegal was removed from the list while Ivory Coast and Angola were also added along with the aforementioned two.

Reuters was told that Ukraine failed in a bid to have Russia added to a so-called “black list” of countries with a high risk of money laundering, with resistance coming from countries including China, India, Saudi Arabia and South Africa.

READ: 16 bodies of migrants recovered off Tunisian coast

The grey list is described as a “a reputational black eye” by experts, and can deter investment and hurt the link between local banks and the world financial system.

The listing of Algeria was unexpected, and is likely to trigger speculation about the role corruption played in the decision to add it. FATF president Elisa de Anda Madrazo said Lebanon had been give some flexibility with regards to deadlines set in its action plan, but didn’t expand upon that at a news conference.

“Of course we recognise the extreme, grave situation that Lebanon is currently facing,” she said, referring to current war, which is expected to devastate Lebanon’s already damaged economy according to the Arab News. “Lebanon’s status on the grey list should not impede relief efforts. … We are working to make sure that channels of humanitarian aid remain open,” she added.

READ: Egypt: 125 people tried for ties with Sinai group

Najib Mikati, caretaker Prime Minister of Lebanon, said the listing of his country was expected “given the known circumstances that hindered the approval of necessary financial legislations and reforms”. He stated that his country has made progress in implementing many recommendations and will continue to co-operate with the FATF. He added that Lebanon’s links with correspondent banks wont be affected by the listing.

Arab Weekly and agencies, Arab News