Opening of Bank Accounts

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[Logo of Bank Al-Maghrib]

Basic Circular for Banks No. 147

We enclose for your reference a copy of Basic Decision No. 13,100 dated September 3, 2019, concerning the opening of bank accounts.

Beirut, on September 3, 2019 Governor of Bank Al-Maghrib (Central Bank of Lebanon) Riad T. Salamé

Text / Section 1 / R. 147 dated 31-12-2024/

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[Logo of Bank Al-Maghrib]

Basic Decision No. 13,100 Opening of Bank Accounts

The Governor of Bank Al-Maghrib (Central Bank of Lebanon), pursuant to the Monetary and Credit Law, particularly Articles 70, 71, and 174 thereof, based on the Ministry of Finance letter No. 2208/1 dated August 14, 2019, and based on the powers vested in the Governor to ensure the operation of Bank Al-Maghrib according to the principle of continuity of public service,

decides as follows:

Article 1: Banks shall, when opening a bank account for any natural or legal person residing in Lebanon to conduct their commercial, professional, or service activities, obtain from them a copy of the registration certificate issued by the Ministry of Finance.

Article 2: Banks shall take the necessary measures to update the files of their clients subject to the provisions of Article 1 above, specifically regarding accounts opened prior to the date of issuance of this decision, by obtaining from them a copy of the registration certificate issued by the Ministry of Finance.

Article 3: Banks are granted a deadline ending on December 31, 2020, to comply with the provisions of Article 2 of this decision.

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Article 4¹: 1. The bank that issued a cashier's check to its client shall accept, upon the latter's request and at his/her responsibility, the return of this check if it has not been endorsed, provided that it is cancelled and its value is re-credited to the client's account, subject to:

• the absence of any legal impediment preventing such action.
• the absence of any pending legal dispute between the bank and the concerned client regarding this check or the said account.

2. The concerned bank shall, if the client's account has been closed, reopen an account for him/her to deposit the value of the checks subject to paragraph 1 of this article.
3. The client may benefit, according to the value of the checks subject to this article, from the provisions of regulatory texts issued by Bank Al-Maghrib (Central Bank of Lebanon), within the conditions specified in each, particularly Basic Circular No. 158 and Basic Circular No. 166.

Article 4 bis²: Banks receiving deposits or transfers originating from grants in US Dollars or any other foreign currency granted by international institutions and donor agencies for distribution to beneficiaries of these grants shall notify the Banking Control Commission of these amounts and the exchange rate applied when converting them from foreign currencies to Lebanese Lira.

Article 5³: Banks shall not refuse checks deposited by clients in their current accounts unless such refusal leads to:

• non-compliance with the provisions of Law No. 44 dated November 24, 2015 (concerning the fight against money laundering and terrorist financing).
• non-compliance with regulatory texts issued by Bank Al-Maghrib (Central Bank of Lebanon), particularly the provisions of Basic Decision No. 7,818 dated May 18, 2018 (concerning the financial and banking operations monitoring system for combating money laundering and terrorist financing) and the provisions of Basic Decision No. 6,939 dated March 25, 1998, regarding solvency ratios.

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¹- This article was repealed and then reinstated pursuant to Interim Decision No. 13,672 dated October 10, 2024 (Interim Circular No. 712). ²- This article was added pursuant to Interim Decision No. 13,309 dated January 29, 2021 (Interim Circular No. 579). ³- This article was added pursuant to Article 2 of Interim Decision No. 13,405 dated January 25, 2022 (Interim Circular No. 611).

Text / Section 1 / R. 147 dated 31-12-2024/

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Article 5 bis¹: First: Banks shall:

1. not impose any new types of commissions on deposit accounts that were not imposed prior to October 31, 2019.
2. prepare a schedule containing accurate and documented information on the actual costs of accounts borne by the client, their calculation method, and their collection mechanism, such that no commissions other than those specified in this schedule are imposed.
3. publish the aforementioned schedule in a prominent location within the head office and all branches, as well as on the bank's website, by a maximum deadline of October 16, 2023. Second: The Banking Control Commission shall monitor the proper implementation of the provisions of this article. Third: Violation of the provisions of this article exposes the non-compliant bank to administrative penalties stipulated in applicable laws and regulations, particularly Article 208 of the Monetary and Credit Law.

Article 6²: This decision shall take effect upon its issuance.

Article 7³: This decision shall be published in the Official Gazette.

Beirut, on September 3, 2019 Governor of Bank Al-Maghrib (Central Bank of Lebanon) Riad T. Salamé

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¹- This article was added pursuant to Interim Decision No. 13,587 dated October 3, 2023 (Interim Circular No. 679). ²- The numbering of this article became "Sixth" instead of "Fifth" pursuant to Article 1 of Interim Decision No. 13,405 dated January 25, 2022 (Interim Circular No. 611), and was originally "Fourth" then became "Fifth" pursuant to Interim Decision No. 13,157 dated December 4, 2019 (Interim Circular No. 536). ³- The numbering of this article became "Seventh" instead of "Sixth" pursuant to Article 1 of Interim Decision No. 13,405 dated January 25, 2022 (Interim Circular No. 611), and was originally "Fifth" then became "Sixth" pursuant to Interim Decision No. 13,157 dated December 4, 2019 (Interim Circular No. 536).