Regulatory Alerts2024-02-02 | 13611Exceptional Measures for the Repayment of Deposits Constituted Before June 30, 2023 in Foreign Currencies
Banque du Liban issued Basic Circular No. 166 to establish an exceptional mechanism for the gradual repayment of foreign currency deposits constituted before June 30, 2023 that are excluded from "Cash Funds" and do not simultaneously benefit from Basic Circular No. 158. The regulation mandates eligible account holders to open a Special Sub Account (SSA) with capped transfers of up to $9,200 and guarantees monthly withdrawals of $500 (split between cash/transfers/cards and POS limits), subject to strict eligibility criteria, banking secrecy waivers, and centralized monitoring. Banks are required to secure liquidity for these payouts without imposing additional fees or conditions, while non-compliant institutions face mandatory liquidity returns and regulatory penalties.