New central bank governor Karim Souaid tackles money laundering and terrorism funding

Lebanon's economic crisis has been ongoing since 2019, with significant factors contributing to the country's financial turmoil, including corruption among political and financial leaders. As of April 2025, the new central bank governor, Karim Souaid, is determined to implement reforms aimed at combating money laundering and the financing of terrorism. He has committed to working independently from political influences while focusing on restructuring the banking sector and addressing public debt to restore citizens' access to their deposits. Lebanon's dire economic situation is exacerbated by the cumulative impacts of various disasters, including the COVID-19 pandemic, the catastrophic Beirut port explosion in August 2020, and a protracted conflict with Israel resulting in substantial damage and losses. These compounded crises have led to a cash-only economy, further straining the nation's financial institutions. In this environment, the Paris-based Financial Action Task Force (FATF) placed Lebanon on its 'grey list' for its inability to effectively address money laundering and terrorism financing. In outlining his strategies, Souaid emphasized the need for Lebanese banks to recapitalize, either through new investments or mergers, especially for those that are struggling. He has put a priority on reimbursing depositors, particularly those with smaller accounts, asserting that this responsibility lies with the banks, the central bank, and the state. The newly appointed governor also has intentions to evaluate previous economic recovery plans put forth by past administrations in order to identify feasible solutions for revitalizing the beleaguered nation. In his previous role as an asset manager, Souaid brings a wealth of experience to his current post. He replaces Riad Salameh, who served as governor for 30 years and stepped down amid numerous corruption allegations. Salameh's era marked significant economic challenges for Lebanon, which has left the country in its current state of crisis. As reforms become increasingly urgent, the international community is watching closely for Lebanon's commitment to implementing the necessary changes to stabilize the economy and secure potential international aid.