The FATF international financial crime watchdog did not put Lebanon on its "grey list" of countries facing special scrutiny according to a statement on Friday after a preliminary mutual assessment had raised concerns it would be.

Three sources familiar with the matter told Reuters in May that Lebanon was likely to be placed on the Financial Action Task Force's list over unsatisfactory practices to prevent money laundering and terrorism financing.

However, the modified list announced on Friday after the watchdog's June meeting did not include Lebanon and officials from the watchdog did not mention the country during a press conference after their statement on the list.

The Middle East and North Africa section of the watchdog had scored Lebanon one mark over the threshold to be grey listed during a preliminary evaluation, a diplomatic source who saw the report told Reuters last month.

But Lebanon was pitching to improve its score, the source also said.

(Reporting by Angus McDowall; Editing by Angus MacSwan)