Event Summary
On 10 June 2025, the European Union added Lebanon to its High-Risk Third Countries list under the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework, with the designation taking effect in July. This measure follows Lebanon’s grey-listing by the Financial Action Task Force (FATF) in October 2024 and requires all EU financial institutions to implement enhanced due diligence procedures for transactions involving Lebanese entities. The EU cited seven strategic deficiencies in Lebanon’s AML/CFT regime, including inadequate risk assessment mechanisms, weak supervisory structures, and insufficient transparency around beneficial ownership.
For civil society organizations, the designation introduces complex operational hurdles such as delayed transactions, rising banking costs, and additional compliance burdens. These include detailed documentation requirements and ongoing monitoring obligations, which may deter financial institutions from maintaining services. The timing of these restrictions poses challenges for NGOs operating during a period of sustained economic and social crisis, potentially impacting access to international funding and program continuity.