Since the onset of Lebanon’s financial crisis in 2019, there has been increasing local and international pressure to address corruption, long considered one of the root causes of the country’s political and economic instability.
In response, Lebanon has taken some gradual steps to strengthen its anti-corruption framework. While progress has been slow and often challenged by weak institutions and limited political will, a number of notable legal reforms have emerged in recent years that directly impact how businesses operate.
Some of the key measures include:
- Law No. 44/2015: The Lebanese Anti-Money Laundering Law, introducing compliance obligations for financial and non-financial institutions.
- Law No. 82/2016: An Anti-Corruption Law focusing on oversight mechanisms.
- Law No. 54/2015: On Asset Declaration for Public Officials, aiming to promote transparency.
- Law No. 244/2020: A new Public Procurement Law intended to curb favoritism in state tenders.
- Whistleblower Protection (Draft Law): Still awaiting implementation, but part of the broader anti-corruption agenda.
- The Lebanese Transparency Association (LTA): A non-governmental organization actively working to support transparency and good governance.
For businesses, whether local enterprises or international investors, these measures signal a shift toward increased scrutiny, compliance, and governance expectations.
Yet, challenges remain. Structural weaknesses in public institutions, overlapping jurisdictions, and limited enforcement capacity continue to undermine the effectiveness of these reforms.
So, what does this mean in practice?
- Compliance: Businesses need to adapt internal policies to align with updated AML and procurement laws.
- Risk Assessment: Companies should monitor legal developments and evaluate risks of operating within a shifting regulatory landscape.
- Opportunity: For ethical businesses, these reforms may create a fairer playing field, especially in public sector contracts and finance.
As Lebanon continues to navigate its recovery, the success of its anti-corruption laws will hinge not only on legislative change but on how those laws are implemented and upheld in practice.