| _version_ | 1866901703017627648 |
|---|---|
| author | Kovatev, David |
| author_facet | Kovatev, David |
| contents | <p>This paper analyses Lebanon’s placement on the FATF “Jurisdictions under Increased Monitoring” list in October 2024 as a test of whether a financially stressed state can move beyond formal anti money laundering (AML), countering the financing of terrorism (CFT) and countering the financing of proliferation (CPF) compliance toward demonstrable and verifiable effectiveness. Rather than focusing solely on legislative alignment, the paper examines how FATF follow up assessments increasingly concentrate on operational delivery, measurable outcomes, and the credibility of underlying data.</p> <p> </p> <p>Drawing on FATF standards and methodology, MENAFATF’s 2023 Mutual Evaluation, World Bank analysis of Lebanon’s cash based economy, and the country’s legal and institutional framework, the paper maps each FATF action plan item to concrete evidence expectations. It shows what assessors look for in practice, including risk based supervision, the use of financial intelligence, investigation and prosecution outcomes, asset recovery, and the implementation of targeted financial sanctions under United Nations Security Council regimes without delay, including for DNFBPs and certain NBFIs.</p> <p> </p> <p>The core contribution of the paper lies in the introduction of two practical analytical tools designed to strengthen follow up reporting and reduce the gap between paper compliance and real world delivery. The Proof Bundle Method proposes a standardised evidence package for each action plan item, linking legal authority, institutional ownership, operational outputs, outcome metrics, anonymised case artefacts, and a verifiable audit trail. The KPI Ownership Matrix complements this approach by assigning clear governance over key performance indicators, clarifying who defines, produces, validates, and reviews performance data, and thereby strengthening KPI credibility and resilience against manipulation.</p> <p> </p> <p>While the analysis is grounded in the Lebanese case, the proposed methods are intentionally designed to be transferable. The paper offers a structured framework that can be applied by other jurisdictions under FATF increased monitoring to organise evidence, improve interagency coordination, and present effectiveness in a manner that is transparent, verifiable, and aligned with FATF follow up expectations.</p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_18421446 |
| institution | Zenodo |
| language | eng |
| publishDate | 2026 |
| publisher | Zenodo |
| record_format | zenodo |
| spellingShingle | Lebanon on the FATF Grey List (2024–2026): From Formal AML/CFT/CPF Compliance to Verifiable Effectiveness, Introducing the Proof Bundle Method (PBM) and a KPI Ownership Matrix (KOM) Kovatev, David FATF Lebanon CPF AML CFT MENAFATF <p>This paper analyses Lebanon’s placement on the FATF “Jurisdictions under Increased Monitoring” list in October 2024 as a test of whether a financially stressed state can move beyond formal anti money laundering (AML), countering the financing of terrorism (CFT) and countering the financing of proliferation (CPF) compliance toward demonstrable and verifiable effectiveness. Rather than focusing solely on legislative alignment, the paper examines how FATF follow up assessments increasingly concentrate on operational delivery, measurable outcomes, and the credibility of underlying data.</p> <p> </p> <p>Drawing on FATF standards and methodology, MENAFATF’s 2023 Mutual Evaluation, World Bank analysis of Lebanon’s cash based economy, and the country’s legal and institutional framework, the paper maps each FATF action plan item to concrete evidence expectations. It shows what assessors look for in practice, including risk based supervision, the use of financial intelligence, investigation and prosecution outcomes, asset recovery, and the implementation of targeted financial sanctions under United Nations Security Council regimes without delay, including for DNFBPs and certain NBFIs.</p> <p> </p> <p>The core contribution of the paper lies in the introduction of two practical analytical tools designed to strengthen follow up reporting and reduce the gap between paper compliance and real world delivery. The Proof Bundle Method proposes a standardised evidence package for each action plan item, linking legal authority, institutional ownership, operational outputs, outcome metrics, anonymised case artefacts, and a verifiable audit trail. The KPI Ownership Matrix complements this approach by assigning clear governance over key performance indicators, clarifying who defines, produces, validates, and reviews performance data, and thereby strengthening KPI credibility and resilience against manipulation.</p> <p> </p> <p>While the analysis is grounded in the Lebanese case, the proposed methods are intentionally designed to be transferable. The paper offers a structured framework that can be applied by other jurisdictions under FATF increased monitoring to organise evidence, improve interagency coordination, and present effectiveness in a manner that is transparent, verifiable, and aligned with FATF follow up expectations.</p> |
| title | Lebanon on the FATF Grey List (2024–2026): From Formal AML/CFT/CPF Compliance to Verifiable Effectiveness, Introducing the Proof Bundle Method (PBM) and a KPI Ownership Matrix (KOM) |
| topic | FATF Lebanon CPF AML CFT MENAFATF |
| url | https://doi.org/10.5281/zenodo.18421446 |