Country Reports on Terrorism 2012

allegation. The SIC refers requests for designation or asset freezes regarding Hizballah and
affiliated groups to the Ministry of Foreign Affairs, but the Lebanese government does not
require banks to freeze these assets, because it does not consider Hizballah a terrorist
organization. However, Banque du Liban, Lebanon’s Central Bank, issued Basic Circular 126,
on April 5, 2012, requiring banks and financial institutions to abide by regulations implemented
by their correspondent banks, including banks with U.S. correspondents.
Three laws intended to strengthen Lebanon’s anti-money laundering/combating the financing of
terrorism regime were passed by the Council of Ministers on March 14, and were awaiting
Parliament’s approval at year’s end. These include:
Amendments to the existing money-laundering Law 318/2001 adding offenses to the
existing law, imposing financial penalties on obliged entities for reporting violations, and
requiring lawyers and accountants to report suspicious transactions
New legislation imposing requirements for declaring cross-border transportation of cash
New legislation on the Exchange of Tax Information, which would authorize the Ministry
of Finance to join bilateral and multilateral agreements to exchange information related to
tax evasion and tax fraud.
In principle, the MOI is responsible for monitoring the finances and management of all
registered NGOs, but it was inconsistent in applying these controls, particularly in cases
involving groups such as Hizballah. By law, all NGOs are obliged to submit a yearly financial
statement to the MOI. The Lebanese banking sector conducts due diligence on NGOs with bank
accounts, monitors their transactions, and reports suspicious transactions to the SIC, which
scrutinizes NGOs utilizing the Lebanese banking system.
Exchange houses were allegedly used to facilitate money laundering, including by Hizballah.
Financial institutions are required to keep records of transactions for five years.
For further information on money laundering and financial crimes, we refer you to the 2013
International Narcotics Control Strategy Report (INCSR), Volume 2, Money Laundering and
Financial Crimes: http://www.state.gov/j/inl/rls/nrcrpt/index.htm.
Regional and International Cooperation: Lebanon continued to voice its commitment to
fulfilling relevant UNSCRs, including 1559, 1680, and 1701. Lebanon is a member of the
Organization of Islamic Cooperation and is party to its Convention on Combating International
Terrorism.
Countering Radicalization and Violent Extremism: Lebanon worked with donor countries
and international organizations to provide development assistance in Palestinian refugee camps
and to provide economic and social opportunities to counter violent extremism in the camps. The
LAF continued to expand its public relations campaigns to bolster its presence and status as the
sole protector of Lebanon’s sovereignty and independence, particularly in southern
Lebanon. There were no programs to rehabilitate and/or reintegrate terrorists into mainstream
society.
LIBYA
130