Regulatory Alerts2016-01-21 | 12174Conditions for Conducting Lending Operations as per the Provisions of Articles 183 and 184 of the Code of Money and Credit
The Governor of the Central Bank of Lebanon issued Fundamental Decision No. 12,174 establishing comprehensive conditions for "Lending Offices" to conduct lending operations under Articles 183 and 184 of the Code of Money and Credit. The regulation mandates a minimum two billion Lebanese Lira capital, restricts operations to lending activities, and imposes strict capital maintenance, branch approval, and financial transparency requirements. It further enforces robust anti-money laundering and terrorist financing frameworks by defining beneficial ownership, capping client loan limits at 5% of own funds or 150 million L.L., and requiring risk-based due diligence, compliance officers, and continuous monitoring.
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