More than 250 money changers across the country are likely to be stripped of licenses and forced into Lebanon’s underground economy, the head of the Lebanese Money Changers Association told The Daily Star, following a Central Bank decision last month to double compulsory minimum capital in an attempt to clamp down on money laundering.
“Out of 400 [licensed] money changers, we have between 250 and 300 who are not capable of affording the hike … What is the advantage of forcing the money changers into the black market?” said Mahmoud Halawi, the head of Lebanese Money Changers Association.
Halawi insisted that the step would induce more chaos in the sector, already swarming with what he described as “protected” unlicensed businesses.
The measure would not aid in efforts aiming to combat money laundering if the business, according to Halawi, “had nothing to do at all with money laundering activities that go through completely different channels.”
“We are always accused of money laundering because of the nature of our business involving cash transactions. But how can our businesses, most of whom operate at under $30,000 of daily trading, be involved in any significant money laundering?” he argued.
