Central Bank of Lebanon Decision No. 71320 Amending the Executive Regulation of Money Dealer Law No. 347

Circular No. 546

For Money Dealer Institutions

Copy of Decision No. 71320 dated 6/3/2020 regarding the amendment of the Executive Regulation of Law No. 347 dated 6/8/2001 concerning the Regulation of the Money Dealer Profession, attached to Basic Decision No. 7933 dated 27/9/2001, subject to the Basic Circular for Money Dealer Institutions No. 3.

Beirut, on 6 March 2020

Governor of the Central Bank of Lebanon

Riad T. Salam

Decision No. 71320

Amending the Executive Regulation of the Law Regulating the Money Dealer Profession Attached to Basic Decision No. 7933 dated 27/9/2001

The Governor of the Central Bank of Lebanon,

Pursuant to the Monetary and Discount Law, particularly Article 70 thereof, Pursuant to Law No. 347 dated 6/8/2001 concerning the regulation of the money dealer profession in Lebanon, particularly Articles 13, 16, 18, 19, and 20 thereof, Pursuant to Basic Decision No. 7933 dated 27/9/2001 and its amendments concerning the Executive Regulation of the Law Regulating the Money Dealer Profession,

Given that the current exceptional circumstances through which Lebanon is passing have significantly affected the exchange rate of foreign currency cash,

Given that in these circumstances, regulating the operations conducted by money dealer institutions is necessary to protect the stability of the Lebanese Lira exchange rate,

Given that it is necessary to take measures to prevent the exploitation of the freedom of trading in foreign currency, which would harm the interests of clients dealing with money dealer institutions, Pursuant to the powers vested in the Governor to ensure the continuity of the Central Bank of Lebanon based on the principle of the continuity of public service,

Decides as follows:

Article One: The following "Article Eighteen" is added to the Executive Regulation of the Law Regulating the Money Dealer Profession attached to Basic Decision No. 7933 dated 27/9/2001:

«Article Eighteen: All money dealer institutions must, under penalty of applying legal and administrative sanctions, particularly those stipulated in Articles 16, 18, and 20 of Law No. 347 dated 6/8/2001, against violators:

1. Comply, exceptionally, with a maximum limit for the purchase price of foreign currency against the Lebanese Lira that does not exceed 30% of the rate determined by the Central Bank of Lebanon in its dealings with banks.
2. Refrain from conducting any currency exchange operation that does not respect the percentage specified in item (1) of this Article.
3. Not adopt margins between the selling and buying prices of foreign currency that deviate from customary practices. ../..

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4. Not cease conducting currency exchange operations of all kinds, so that the flow of these operations remains consistent with the pattern of activity practiced during the previous two years (2018 and 2019), under penalty of being struck off the list of money dealer institutions.

5. Comply with principles of integrity and honesty and follow established procedures in dealings with the public.»

Article Two: This Decision shall be effective for a period of 6 months from the date of its issuance.

Article Three: This Decision shall be published in the Official Gazette.

Beirut, on 6 March 2020

Governor of the Central Bank of Lebanon

Riad T. Salam