Middle Eastern NCCTs: Lebanon

Last month Sue Grossey looked at money laundering regulation in Israel. In this article she moves north to consider how Lebanon has responded to its inclusion on the FATF list of non-cooperative countries and territories.

Sue Grossey

Lebanon

Context

Lebanon covers an area of 10,400 square kilometres, sandwiched between Israel, Syria and the Mediterranean Sea. Since the end of its devastating fifteen-year civil war in 1990, Lebanon has made progress towards rebuilding its political institutions. Under the Ta’if Accord – the blueprint for national reconciliation – the Lebanese have established a more equitable political system, particularly by giving Muslims a greater say in the political process. Since the end of the war, Lebanon has held several successful elections, most of the militias have been weakened or disbanded, and the Lebanese Armed Forces (LAF) have extended central government authority over about two-thirds of the country. Hizballah, the radical Shi’a party, retains its weapons. Syria maintains about 25,000 troops in Lebanon based mainly in Beirut, North Lebanon, and the Bekaa Valley: Damascus justifies its continued military presence in Lebanon by citing the continued weakness of the LAF, requests from Beirut, and the failure of the Lebanese Government to implement all of the constitutional reforms in the Ta’if Accord. Israel’s withdrawal from its security zone in southern Lebanon in May 2000, however, has emboldened some Lebanese Christians and Druze to demand that Syria withdraw its forces as well. Lebanon is governed as a republic, and Prime Minister Rafic Hariri has held his post since October 2000.