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Up to standard

by Jeremy Arbid

With the mid-April implementation of the Hezbollah International Financing Prevention Act (HIFPA), signed into United States law in December 2015, Executive inquires whether Lebanese financial institutions face an increased level of American scrutiny. The new law places liability on any financial institution, not just Lebanese banks, if they were to knowingly facilitate financial transactions connected to Hezbollah. In the lead up to HIFPA’s ratification and immediately after, Lebanese banks took notice. De-risking ensued, accounts were closed and, according to local media reports, the opening of new accounts were denied for some politically exposed persons. In the month preceding the law’s ratification, in mid-November, Lebanon was in danger of being cut off from the international financial system due to out of date anti-money laundering rules. After many months of complacency, and despite urging from Banque du Liban (BDL), Lebanon’s central bank, Lebanese politicians rushed to Parliament to pass anti-money laundering (AML)

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