Banks warned against 'abuse' by Syria and Iran

US envoy confident in financial system’s
ability to weather impact of Syria crisis

Washington is urging Lebanon to protect its financial sector from being “abused by illicit actors”. U.S. Treasury Deputy Secretary Neal Wolin, who visited Beirut on September 11, underscored the need for the country to remain vigilant against the evasion of sanctions by Iran and Syria.

During the past 18 months pressure had mounted on the financial sector to abide by sanctions imposed on Syria and Iran. Fiscal authorities and banks have taken a series of measures to protect the sector against money laundering and terrorist financing allegations.

After meeting with top officials and bankers, Wolin said he was confident in the ability of the financial system to weather the impact of the crisis in Syria.

The Central Bank adopted a set of regulations to further enhance its anti-money laundering policies. These included new criteria for operations between banks and their foreign correspondents, and higher control over money dealers. The Association of Banks (ABL) had also issued a set of recommendations on how to comply with the sanctions.

A new law for controlling transfer of cash across the borders is being considered by Parliament.
Wolin discussed with local officials the implementation of the US Foreign Account Tax Compliance Act (FATCA), which aims to combat cross border tax evasion.