Regulatory Alerts2006-08-07
CBL Directive on Encashment of Checks Payable to Corporate or Institutional Entities
The Central Bank of Lebanon (CBL) issued this directive to require commercial banks to prohibit the encashment or deposit of checks payable to corporate or institutional entities when endorsed to individuals. All qualifying checks must instead be deposited directly into the payee’s account for subsequent withdrawals, and mixed checks payable to both corporate entities and individuals are excluded from encashment or deposit. These operational rules take immediate effect upon issuance by Executive Governor J. Mills Jones on August 7, 2006.
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