EU Adds Lebanon to Restricted Euro Transactions List

🇱🇧 Starting August 5, 2025, the European Union has officially added Lebanon to its list of “restricted” countries for euro transactions, a move linked to Lebanon’s ongoing inclusion on the Financial Action Task Force (FATF) grey list.

The decision means opening euro accounts or conducting euro-denominated transactions for Lebanese residents or linked clients will now face stricter checks, delays, and potential rejections. The measure mirrors the EU’s anti–money laundering and counter-terrorism financing rules, similar to U.S. Treasury restrictions on the dollar.

Potential impacts include:
• Slower euro transfers and more rejected payments
• Reduced access to euro-based financial services
• Increased costs and complications for Lebanese importers dealing with Europe
• Risk of a 10–15% drop in euro-based remittances from expatriates in Europe
• Greater reliance on USD transfers or informal channels, raising transparency and security concerns

While some officials, like Special Investigation Commission head Abdul Hafiz Mansour, stress that this is a routine procedural measure applied to all FATF grey-listed countries (with no total cut-off expected), economists like Dr. Pierre El Khoury warn it is a serious setback for Lebanon’s already fragile financial sector, potentially worsening liquidity shortages, undermining investor confidence, and increasing economic isolation.