The Special Investigation Commission (SIC) against money laundering and terrorism financing issued its annual report detailing its activities about tracing money generated from illegal activities in Lebanon in 2018. Established by Banque du Liban as an independent legal entity, the SIC's mandate is to investigate suspected money-laundering operations and to monitor compliance with the rules and procedures of Law 318, the anti-money laundering law that was enacted by the Lebanese Parliament in April 2001 and that was replaced by Law 44 in November 2015.

The report indicated that the SIC received 489 suspected cases in 2018. It received 398 cases, or 81.4% of the total, from local sources, and 91 cases, or 18.6% from international sources. In turn, the SIC referred 168 suspected cases to the judicial authorities, while 74 cases are still pending and the remaining 247 cases did not fall within the framework of Law 44. Further, authorities lifted the banking secrecy on 30 cases, with six of those cases referred from foreign governments and organizations and 24 cases from domestic sources. The remaining 138 cases were related to information requests. Overall, the SIC investigated 415 out of 489 cases, or 84.9% of the total in 2018, relative to 86.1% of suspected cases in 2017, 84.9% of cases in 2016, 77.5% of cases in 2015, 73.6% of cases in 2014, 84.7% of cases in 2013 and 67.3% of cases in 2012.

Cybercrime accounted for 25.1% of the cases that the SIC received in 2018; followed by counterfeiting & forgery with 20.8%; narcotics trafficking with 6.1%; terrorism and terrorism financing with 5.1%; fraud with 4.6%; corruption with 4.4%; embezzlement of private funds with 2.5%; tax evasion with 2.3%; the use of insider information with 1.3%; smuggling with 1.1%; and organized crimes, sexual exploitation, murder and illegal arms trade with 0.2% each; while the remaining 26% of cases did not fall under a specific category.

Sources of Request for Assistance*
(from Foreign Countries and Organizations)

 

 

*% of total foreign requests
Source: Special Investigation Commission, Byblos Research

Figures issued by Banque du Liban (BdL) show that there were 27,267 individuals employed in the Lebanese financial sector at the end of 2018, constituting a marginal increase of 0.2% from 27,202 persons at the end of 2017, while they grew by 12.9% from 24,155 at end-2013 and by 39.6% from 19,534 at the end of 2008. Commercial banks accounted for 91.9% of total employees in the financial sector, followed by financial institutions with 4.9% and medium- & long-term banks with 3.2%. There were 13,047 females employed in the Lebanese financial sector at the end of 2018, equivalent to 47.8% of the sector's workforce.

Commercial banks had 25,071 employees at the end of 2018, relative to 22,265 individuals at end-2013 and to 18,190 persons at the end of 2008. They consisted of 17,086 non-executive employees or 68.2% of the total, 7,749 executives (30.9%), and 236 individuals who were either general managers, deputy general managers or assistant general managers (0.9%). In addition, there were 12,150 females employed at banks at end-2018, accounting for 48.5% of the total number of employees at commercial banks. Further, 80% of executives and non-executives at commercial banks held a university degree, 12% had a baccalaureate and 8% held a degree below the baccalaureate level. There were 49 commercial banks operating in Lebanon at the end of 2018, unchanged from end-2017, with 1,080 branches across Lebanon relative to 1,065 at end-2017.

The Ministry of Labor unveiled a plan to combat illegal foreign labor in Lebanon. According to the plan, the ministry will launch a media campaign to explain to citizens the objectives of the plan, and to clarify the rights and duties of business owners and foreign workers. Also, the ministry will give foreign workers and business owners a period of one month to settle their violations starting from June 10, 2019. In addition, it will ask the private sector, the General Confederation of Lebanese Workers, and syndicates, among other entities, to abide by the law that prohibits the recruitment of foreign workers in professions, jobs and occupations confined to Lebanese nationals, as well as to insure the availability of a work permit for their foreign workers in sectors where they are allowed to work.

The plan stipulates that the share of non-Lebanese business owners in the capital of the company or enterprise should be no less than LBP100m when applying for their work permits. Also, it requires such companies to have at least 75% of their headcount as Lebanese nationals. In addition, the ministry intends to strengthen the role of its inspection unit in order to enforce the law, to fine non-abiding employers, close illegal businesses and scrutinize the provision of work permits, among others. It noted that the fine for non-abiding employers will increase from a maximum of LBP2.5m to LBP5m under the 2019 draft budget. 

Further, the plan includes the establishment of a joint-operation task force between the Ministry of Labor, the Internal Security Forces, the State Security and the General Security, in order to support the inspection unit when conducting its tasks. It also stipulates that ministries that have inspection units, as well as municipalities, should cooperate with the Labor Ministry to control illegal employment. In addition, the plan incorporates the support of the Ministry of Social Affairs, which should provide the Ministry of Labor with the names of individuals who benefit from contributions and donations from international organizations and the United Nations High Commissioner for Refugees, in order to withhold work permits from these beneficiaries.