Results of the National Risk Assessment Process for Money Laundering and Terrorist Financing Risks

Section One: Summary of Money Laundering Risk Assessment Results for National Sectors.

Money laundering classifications in the State of Lebanon range from (High) to (Low), noting that these classifications reflect familiar categories assessing the following relevant sectors:

Sector	Sector Details	Relevant Original Sectors
Financial Funds (from Most Classified): Broad transfers, embezzlement, public corruption, scarcity, misuse of authority, credit mismanagement, financial stability.	High
National Banks with Financial and Banking relevance	High
All operations reflect (Operations related to Funds): Addressing, heat, and warmth	High to High
Usually reflects other operations like interest and clearing transfers, and customer elevation	High to High on transfers
Reflects on related contracts collecting all relevant rates, technical and directional handling.	High to High
Reflects basic work in assurance (distributed factor, and less probable probability	High to High credit).
Credit mismanagement Credit mismanagement in the base adds duplication.	High

The assessment considers two main factors: the first relates to the national sector's risk elevation, and the second, which differs in assessing 11 sectors as detailed below. It also considers the state's capacity to manage national sector risks.

Recently (2024), and consequently, this was not reflected in the National Risk Assessment which highlighted an important observation: electronic fraud has increased, especially since the beginning of 2017-2023.

Section Two: Summary of Money Laundering Risk Assessment Results for Sectors.

The assessment relies on classification grades, risk elevation levels, and national capabilities:

Section Three: Summary of Money Laundering Risk Assessment Results for Banking Lending Sectors.

The money laundering risk in the banking lending sector (national) is assessed as (High), based on classification results ranging from (Low) to (High), and the national sector's risk elevation level.

Section Four: Summary of Terrorist Financing Risk Assessment Results for National Sectors.

The terrorist financing risk grade on national sectors ranges from (High) to (Low), with classifications in Lebanon ranging from (Low) to (High). The following are the relevant terrorist financing sectors:

Sector	Risk Grade	Elevation Level	Probability/Exposure Grade
National Banks	High to High	High to High	High, acceptable for operations
Financial Operations	High, acceptable for operations	Low to High	Low to High
Banking Lending	Low
Credit Endowment	Low to High	Low to High	Low to High
Securities (National coherence)	High to High	High	High
Properties	Low
Foreigners (National)	Low
National Assets	High
Income Streams (National and Parties)	High to High	High to High	High to High
Names (National)	Low	High	Low
Real Estate Workers	High, Real Estate
Property loyalty and administration	Low	Low

The national sector's risk elevation is estimated as (High), based on national factors:

Section Five: Summary of Terrorist Financing Risk Assessment Results for Sectors.

Results range from "High" to "Low" according to the following protocol:

Sector	Risk Grade	Elevation Level	Probability/Exposure Grade
National	Low to High	Low to High	Low to High
National	Low to High	Low to High	Low to High
Banking Lending	Low
Credit Endowment	Low
Securities (National coherence)	Low
Properties	Low
Foreigners (National)	Low
Income Streams (National and Parties)	Low to High	Low	Low to High
Names (National)	Low to High	Low	Low
Real Estate Sector	Low to High	Low	Low to High
Names (National)	Low

Criteria for Estimating Terrorist Financing Classifications in the Banking Lending Sector:

The following details criteria for estimating terrorist financing classifications in the banking lending sector:

Sector	Factors Related to Types of Terrorist Financing (High)
Found that types/cases in the State (related to misuse of base) are not renewed
Found that types/cases on the National (related to misuse of base) are not renewed
National Rich and Coherent Factors	High
National Factor (especially Base)	Not renewed
National Rich Factor (especially Base)	Not renewed

The base gives identities of terrorist financing on the National (High) to (Low):

• Classification of terrorist financing National to (High)
• Classification of terrorist financing Capable on the National to (High)
• Classification of terrorist financing Incoming on the National to (High)
• Classification of terrorist financing Transversal on the National is not renewed

National Sector Risk Elevation Estimation:

The national sector's risk elevation is estimated as (High), based on national factors:

Sector	National Factors
General/ Base turnover rate	Low
National Capable Workers	Not renewed /
Factors/ National Capable to Reality Rich More experienced	Not renewed
National Incoming Workers	Not renewed /
Factors/ National Incoming from Reality Rich More experienced	Not renewed
Circular file base National	Low
National Fulfillment Acceptance	Low
Usage of Census, Clients, and Other Transactions	Not renewed
Suitability/ Effectiveness for Terrorist Financing	Low