BDL takes key steps to restore financial confidence
The first move was the issuance of Circular 170, which prohibits banks from directly or indirectly dealing with unlicensed or sanctioned entities, most notably the Qard al-Hassan association.
The measure drew positive reactions from the U.S. Treasury Department, France's Finance Ministry, Gulf states, and other international actors.
However, critics inside Lebanon dismissed it as symbolic, arguing that Qard al-Hassan is outside the BDL's authority and that banks had little interaction with it to begin with.
The significance of the circular was highlighted days later when reports surfaced about the Middle East and Africa Bank (MEAB). A Washington-based think tank, the Foundation for Defense of Democracies, suggested the bank may have had direct or indirect ties to al-Qard al-Hassan, with suspicious funds traced through a U.S. correspondent bank and flagged to the Treasury Department. This clarifies the essence of Circular 170 and the purpose of its issuance.
The second step was a contract signed with K2 Integrity, a global leader in anti-money laundering and counterterrorism financing. The firm has helped countries such as the United Arab Emirates (UAE) exit the Financial Action Task Force's "gray list" and is currently advising Iraq on financial reforms.
BDL's decision to make the partnership public was widely seen as a signal of transparency and commitment to tackling Lebanon's shadow economy, corruption, and illicit finance.
The move earned positive coverage in regional outlets, including Asharq al-Awsat and Kuwait's Al-Nidaa, though some Lebanese lawmakers questioned the contracting process. BDL responded that all procedures followed legal frameworks and that the Parliament had been briefed.
Ultimately, observers said the two measures—Circular 170 and the partnership with K2 Integrity—represent critical steps toward Lebanon's reintegration into the global financial system and eventual removal from the FATF gray list, even as domestic debate continues over their scope and implementation.
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