Lebanon has been placed on the Financial Action Task Force's (FATF) grey list due to its ongoing challenges with terrorism financing and judicial independence, exacerbated by a severe financial crisis that has persisted since 2019. This designation raises concerns about illicit financial flows and could further deter foreign investment, impacting Lebanon's already fragile economy. The FATF has extended Lebanon's compliance deadline to 2026 in light of the current military tensions, particularly related to Israeli operations against Hezbollah. The grey-listing adds to the country's difficulties, as three-quarters of its population now live in poverty following a debt default in 2020. Despite these challenges, FATF President Elisa de Anda Madrazo assured that humanitarian efforts would not be obstructed. This situation could significantly affect the relationship between Lebanese banks and the global financial system.