Basic Circular for Banks No. 165

Also addressed to Financial Institutions

We enclose for your reference a copy of Basic Decision No. 13548 dated April 19, 2023, concerning the electronic settlement of "Fresh Money".

Beirut, April 19, 2023 Governor of Banque du Liban Riad T. Salamé

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Basic Decision No. 13548

Electronic Settlement of "Fresh Money"

The Governor of Banque du Liban, Pursuant to the Monetary and Loan Law, particularly Articles 70 and 174 thereof, Pursuant to Law No. 133 dated October 26, 1999, concerning the functions of Banque du Liban, After the payment systems at the Central Office of Banque du Liban (NPS-BDL) were developed to include electronic transfer, clearing, and settlement of "Fresh Money", And based on the decision taken by the Central Council of Banque du Liban in its meeting held on March 29, 2023, Decides as follows:

Article 1

For the purpose of applying this Decision, "Fresh Money" refers to funds transferred from abroad and/or received in foreign currency banknotes after October 17, 2019, and funds deposited or to be deposited in banknotes into new Lebanese Lira accounts, provided they meet the conditions specified in Article 2 of Basic Decision No. 13217 dated April 9, 2020.

Article 2

All banks and financial institutions participating in the (NPS-BDL) system must comply with the principles and rules specified below in this Decision.

Article 3

The settlement procedures for "Fresh Money" operations shall apply the clearing and settlement procedures for electronic bank transfers and electronic clearing, in accordance with the instructions contained in Basic Decision No. 11081 dated June 27, 2012, concerning the Real-Time Gross Settlement (RTGS-BDL) system (Basic Circular No. 127), and Basic Decision No. 11597 dated November 6, 2013, concerning the Clearing System (CLEAR-BDL) (Basic Circular No. 130). Such settlement shall be exclusively conducted through the new accounts subject to Article 4 below. (Note: This article was amended by Article 1 of Interim Decision No. 13799 dated January 21, 2026 (Interim Circular No. 756).)

Article 4

All participants in the (NPS-BDL) system shall:

• 1 Open new accounts at Banque du Liban in Lebanese Lira and US Dollars, exclusively dedicated to conducting all operations related to the clearing of checks and electronic transfers for "Fresh Money" within a maximum deadline of May 10, 2023. The balances of these accounts shall be constituted as follows:
• Deposit of banknotes at the Monetary Operations Directorate of Banque du Liban, dedicated to funding the new Lebanese Lira accounts.
• Deposit of banknotes at the Foreign Currency Unit of Banque du Liban or via transfers from correspondent banks abroad, dedicated to funding the new US Dollar accounts.
• 2 Use these new accounts exclusively for settling electronic bank transfers and clearing of checks, in addition to (BDL-CLEAR) Credit Transfers and Direct Debit files traded with "Fresh Money".
• 3 Deposit the required banknotes into the aforementioned new accounts belonging to the parties referred to in Article 2 of this Decision, ensuring sufficient liquidity for "Fresh Money" to successfully complete settlement operations in the (NPS-BDL) system. Each bank shall determine its deposit value in the new accounts, provided it maintains the necessary balance during business hours to ensure successful settlement operations. In case of insufficient liquidity in these accounts to complete settlement, the concerned bank shall be subject to the provisions of Law No. 67/2 dated January 16, 1967 (placing suspended banks under special provisions), in addition to being obliged to pay compensation, as a penalty clause of no less than one billion Lebanese Lira. In addition to the aforementioned paragraph, Banque du Liban may collect double the value of the shortfall in the new Lebanese Lira account from any other accounts of the concerned bank opened at Banque du Liban in Lebanese Lira, excluding "Fresh Money".
• 4 Submit to the Monetary Operations Directorate a request for special checkbooks used exclusively for cash withdrawals from the new accounts, in accordance with the mechanism currently adopted for other checkbook requests. Banks are prohibited from issuing bank checks on "Fresh Money" drawn on their accounts at Banque du Liban, except for the order of the concerned bank as account holder, for the purpose of cash withdrawal from these accounts pursuant to the checks mentioned in paragraph (4) above. Exceptionally, banks may issue Lebanese Lira checks drawn on their new accounts at Banque du Liban, exclusively dedicated to settling taxes (including VAT) and fees (including customs), as well as deductions belonging to public sector entities (ministries, municipalities, administrations, institutions, and public services), provided that the value of a single check does not exceed ninety-one billion Lebanese Lira.
• 5 Adopt new REC Codes for operations related to "Fresh Money" in the Real-Time Gross Settlement (RTGS-BDL) system, according to Annex No. 1 attached to this Decision.
• 6 Submit a request, signed according to the principles, to the Payment Systems Directorate, to subscribe to Agreements Stream New for both check clearing and small credit transfers clearing, as well as direct debit clearing related to "Fresh Money", according to Annex No. 2 attached to this Decision.

Article 5

The new "Fresh Money" accounts will be linked to an additional SWIFT code for the participant and identified in the payment system as a "Fresh Money" participant, requiring them to do the following: a- Request SWIFT to add 'DLP' as Branch Code (Branch Qualifier) and select the 'CMI' Code. b- Request Banque du Liban's IT Directorate to issue new SMART CARDS connected exclusively to the new account (Annex No. 3 and 4) within a maximum deadline of May 10, 2023. c- Complete the DLP-NPS-BDL identification forms (Annex No. 5, 6 and 7) and submit them to Banque du Liban's IT Directorate within a maximum deadline of May 10, 2023.

Article 6

Banque du Liban shall conduct daily clearing of "Fresh Money" checks according to the check clearing session times, which will be determined subsequently. (Note: This paragraph was added by Article 1 of Interim Decision No. 13555 dated June 7, 2023 (Interim Circular No. 669).)

Article 7

All banks shall:

• 1 Use the number 9 in the clearing house code field at position 36 of the MICR line to indicate "Fresh Money" check clearing.
• 2 Add the word 'Fresh' printed in green on checks dedicated to "Fresh Money" below the bank's name at the basic printing level, to distinguish them from other checks which remain unchanged. Banks may add any distinguishing mark with security protection on these checks.
• 3 Sign the form regarding the authorization letter for moving electronic clearing accounts of checks drawn on "Fresh Money" accounts, according to Annex No. 8 attached to this Decision.

Article 8

The (NPS-BDL) system services related to "Fresh Money" settlement operations are provided every business day as shown in the following table:

Days	RTGS-BDL System	Clear-BDL System
Monday, Tuesday, Wednesday, and Thursday	From 8:00 AM to 4:00 PM	From 8:00 AM to 3:30 PM
Friday	From 8:00 AM to 2:00 PM	From 8:00 AM to 1:30 PM

Article 9

The commissions charged for "Fresh Money" operations are determined by a notice issued by the Governor of Banque du Liban.

Article 10

Any transfers between the participants' new "Fresh Money" accounts mentioned in this Decision and any of the participants' other accounts at Banque du Liban are prohibited.

Article 11

Any default by any "participant" in fulfilling their obligations under this Decision exposes them to the administrative penalties stipulated in Article 208 of the Monetary and Loan Law.

Article 12

The operations and clearing of "Fresh Money" shall commence on June 12, 2023. (Note: This article was amended by Article 2 of Interim Decision No. 13555 dated June 7, 2023 (Interim Circular No. 669), and the operations were originally scheduled to commence on June 1, 2023.)

Article 13

This Decision shall take effect upon its issuance.

Article 14

This Decision shall be published in the Official Gazette.

Beirut, April 19, 2023 Governor of Banque du Liban Riad T. Salamé

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Annex No. 1 to Basic Decision No. [Date]

Table of Approved REC Codes for "Fresh Money"

Below is a list of the approved REC Codes for operations dedicated to "Fresh Money" transfers. Real-Time Gross Settlement System – RTGS-BDL

Type	Code	Short Name	Description	Currency
DLP Transfer Payments	TRDLP	TRNSF DLP	Clearing DLP	LBP & USD
Cheques	CLDLP	Clear DLP		LBP & USD
Credit Transfer DLP	CRDLP	CRED TRN DLP		LBP & USD
Direct Debit DLP	DBDLP	DRECT DB DLP		LBP & USD

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Annex No. 3: Smart Card User Access Form (Testing Environment - UAT)

BDL-SITI | Testing Environment (UAT) | Form No. 3: BDL-SCUAF-UAT Banque du Liban - IT Dept. | T: 00961-1-343400 | F: 343316 | E: bdlit@bdl.gov.lb | W: www.bdl.gov.lb | Beirut – Lebanon Bank/Financial Institution Name: _______________ BDL List No.: _______________ Date: _______________ IT Directorate Side - Banque du Liban Subject: Request for new Smart Card Project: National Payment System (DLP-NPS-BDL) – Testing Environment (UAT) Since the IT Directorate at Banque du Liban will provide each participant's representative in the aforementioned project with a Smart Card and card reader, enabling them to use the system via Banque du Liban's secure electronic network on the aforementioned environment, Based on the above, and after reading and agreeing to the attached card usage terms, we authorize Mr./Ms. identified below to receive the Smart Card and card reader specific to him/her. User Identification (Please write information completely in Latin capital letters) First Name: _______________ Family Name (Maiden): _______________ Father's Name: _______________ Position/Title: _______________ Land Line No.: _______________ Mobile No.: _______________ Email: _______________ Required Privileges on Testing Environment (UAT): Administrator (Yes/No), User (Yes/No) System User Signature: _______________ Board Chairman / General Manager or Representative of Foreign Institution in Lebanon Signature & Stamp: _______________

Mandatory Terms for Smart Card Usage: Firstly, each bank and "User" undertakes:

• To maintain the Smart Card permanently and ensure it is not left in the reader after use.
• Not to disclose the Smart Card's PIN code for any reason.
• Not to allow other users, besides the authorized "User", to use the Smart Card.
• Not to use the Smart Card for purposes other than those authorized.
• To immediately notify Banque du Liban of any breach or suspected breach in the Smart Card's use, loss, theft, or unauthorized use. The bank administrator must immediately cancel the card's privileges in the system.
• To return the Smart Card and reader with a cancellation request signed by the user or bank according to procedures.
• To comply with banking secrecy law provisions. Secondly, each bank and "User" acknowledges and agrees:
• The system can only be used during the times specified in the daily schedule table.
• Banque du Liban has the right to cancel the Smart Card usage privilege and retrieve it with the reader if deemed necessary, particularly in cases of: breach/suspected breach of the card/PIN; termination of the "User"'s service; or non-compliance with obligations under this letter.
• The Smart Card's validity period is 5 years from the issue date, and Banque du Liban will retrieve it before expiration for renewal.
• The IT Directorate provides technical assistance to ensure system integrity. Contact Banque du Liban at 01/750000 Ext. 2222 for Desk Help, or via email at lb.gov.bdl@ithelpdesk.

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Annex No. 4: Smart Card User Access Form (Production Environment)

BDL-SITI | Production Environment | Form No. 4: BDL-SCUAF-PROD Banque du Liban - IT Dept. | T: 00961-1-343400 | F: 343316 | E: bdlit@bdl.gov.lb | W: www.bdl.gov.lb | Beirut – Lebanon Bank/Financial Institution Name: _______________ BDL List No.: _______________ Date: _______________ IT Directorate Side - Banque du Liban Subject: Request for new Smart Card Project: National Payment System (DLP-NPS-BDL) – Production Environment Since the IT Directorate at Banque du Liban will provide each participant's representative in the aforementioned project with a Smart Card and card reader, enabling them to use the system via Banque du Liban's secure electronic network on the aforementioned environment, Based on the above, and after reading and agreeing to the attached card usage terms, we authorize Mr./Ms. identified below to receive the Smart Card and card reader specific to him/her. User Identification (Please write information completely in Latin capital letters) First Name: _______________ Family Name (Maiden): _______________ Father's Name: _______________ Position/Title: _______________ Land Line No.: _______________ Mobile No.: _______________ Email: _______________ Required Privileges on Production Environment: Administrator (Yes/No), User (Yes/No) System User Signature: _______________ Board Chairman / General Manager or Representative of Foreign Institution in Lebanon Signature & Stamp: _______________

Mandatory Terms for Smart Card Usage: Firstly, each bank and "User" undertakes:

• To maintain the Smart Card permanently and ensure it is not left in the reader after use.
• Not to disclose the Smart Card's PIN code for any reason.
• Not to allow other users, besides the authorized "User", to use the Smart Card.
• Not to use the Smart Card for purposes other than those authorized.
• To immediately notify Banque du Liban of any breach or suspected breach in the Smart Card's use, loss, theft, or unauthorized use. The bank administrator must immediately cancel the card's privileges in the system.
• To return the Smart Card and reader with a cancellation request signed by the user or bank according to procedures.
• To comply with banking secrecy law provisions. Secondly, each bank and "User" acknowledges and agrees:
• The system can only be used during the times specified in the daily schedule table.
• Banque du Liban has the right to cancel the Smart Card usage privilege and retrieve it with the reader if deemed necessary, particularly in cases of: breach/suspected breach of the card/PIN; termination of the "User"'s service; or non-compliance with obligations under this letter.
• The Smart Card's validity period is 5 years from the issue date, and Banque du Liban will retrieve it before expiration for renewal.
• The IT Directorate provides technical assistance to ensure system integrity. Contact Banque du Liban at 01/750000 Ext. 2222 for Desk Help, or via email at lb.gov.bdl@ithelpdesk.

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Annex No. 5: National Payment System (NPS) BDL-CLEAR - Participation Preferences

Participant Name: «Name» Participant No.: «No.»_ SWIFT Code: «1BIC»«2BIC» Reference No.: _______________ Date: _______________ 1. DLP-Cheques Clearing Agreement (Signature/Stamp)

Cheques Clearing Stream Agreement Rules	CQDLBP / CQDUSD (Yes/No)
a. Submit Batches in the Clearing Stream Agreement
b. Receive collection batch notification
c. Receive distribution batch of Original CTI's as A BENEFICIARY
d. Route distribution batches via SWIFT
e. Receive Distribution batch format in XML
f. Receive Distribution batch format in CSV
g. If done by AGENT, Receive notification Upon Cancel Instruction(s)
h. If done by AGENT, Receive notification Upon Submit/Upload a Batch

2. DLP Direct Debits Clearing Agreement (Signature/Stamp)

Direct Debit Clearing Stream Agreement Rules	DBDLBP / DBDUSD (Yes/No)
a. Participant in the CSA
b. Submit Batches in the Clearing Stream Agreement
c. Receive collection batch notification
d. Receive distribution batch of Original CTI's as A BENEFICIARY
e. Receive distribution batch of Return CTI's as A BENEFICIARY
f. Route distribution batches via SWIFT
g. Receive Distribution batch format in XML
h. Receive Distribution batch format in CSV
i. If done by AGENT, Receive notification Upon Cancel Instruction(s)
j. If done by AGENT, Receive notification Upon Submit/Upload a Batch

3. DLP Credit Transfers Clearing Agreement (Signature/Stamp)

Credit Transfer Clearing Stream Agreement Rules	CRDLBP / CRDUSD (Yes/No)
a. Submit Batches in the Clearing Stream Agreement
b. Receive distribution batch of Original CTI's as A PAYER
c. Receive distribution batch of Return CTI's as A PAYER
d. Route distribution batches via SWIFT
e. Receive Distribution batch format in XML
f. Receive Distribution batch format in CSV
g. If done by AGENT, Receive notification Upon Cancel Instruction(s)
h. If done by AGENT, Receive notification Upon Submit/Upload a Batch

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Annex No. 6: National Payment System (NPS) BDL-RTGS - Administrator’s Function Authorization Levels

Bank Name: _______________ Bank No.: _______________ Date: _______________ IT Directorate Side Our bank wishes to distribute Administrator functions in the system according to the following table:

Administrator’s Function	Authorization Level (Select ONLY ONE level per function)
Delete a Business Area	Capturer (1 smart card), Capturer & 1st Authorizer (2 smart cards), Capturer, 1st & 2nd Authorizer (3 smart cards)
Delete a role	Capturer (1 smart card), Capturer & 1st Authorizer (2 smart cards), Capturer, 1st & 2nd Authorizer (3 smart cards)
Maintain Domain Daily Schedule	Capturer (1 smart card), Capturer & 1st Authorizer (2 smart cards), Capturer, 1st & 2nd Authorizer (3 smart cards)
Modify a business Area	Capturer (1 smart card), Capturer & 1st Authorizer (2 smart cards), Capturer, 1st & 2nd Authorizer (3 smart cards)
Modify A Role	Capturer (1 smart card), Capturer & 1st Authorizer (2 smart cards), Capturer, 1st & 2nd Authorizer (3 smart cards)
Modify function authorization Level	Capturer (1 smart card), Capturer & 1st Authorizer (2 smart cards), Capturer, 1st & 2nd Authorizer (3 smart cards)
Modify user	Capturer (1 smart card), Capturer & 1st Authorizer (2 smart cards), Capturer, 1st & 2nd Authorizer (3 smart cards)

Please accept our highest regards. Signature & Stamp: Board Chairman / General Manager Banque du Liban Street - P.O.B. 11-5544 Beirut – Lebanon

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Annex No. 7: National Payment System (NPS) BDL-RTGS - Receive Financial electronic SWIFT notification

Bank Name: _______________ Bank No.: _______________ Date: _______________ IT Directorate Side Our bank wishes to receive electronically and on the SWIFT network all notifications according to the following table:

Description	The notification MRT code and its Description SWIFT via SWIFT	Yes/No
Notification of the Debit Instruction on your account done by the ASA on your behalf. The MT298 will contain all of the BLOCK 4 of the original MT202 submitted by the ASA.	NFS9 FC Concurrent batch settled notification (LOM) MT298 ____
Settlement notification (RTM)	NSSA
Settlement notification (LOM)	NSSB
Concurrent batch settled notification (LOM)	NSSQ
IATI notification	NSSS
Settlement notification (FC)	NFS4 FC Settlement notification (LOM) MT012 confirmation of settlement COP 0
System generated FSI settled notification (RTM)	MT012 ____
Settlement notification (FC)	NSSE
Foreign Currency Fund Settlement Instruction (FSI) Account position Update Messages: FC FSI account position update (Credit) MT910 ____ / FC FSI account position update (Debit) MT900 ____	NAF 0 / NAF 1
Local Currency Fund Settlement Instruction (FSI) Account position Update Messages: FSI account position update (Credit) MT910 ____ / FSI account position update (Debit) MT900 ____	NAF 0 / NAF 1

Please accept our highest regards. Signature & Stamp: Board Chairman / General Manager or Representative of Foreign Institution in Lebanon Banque du Liban Street - P.O.B. 11-5544 Beirut – Lebanon

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Annex No. 8 to Basic Decision No. [Date]

Authorization Letter for Moving Accounts

Banque du Liban Side By: _________________________ The bank ________________________________________________ authorizes you, at your full responsibility and irrevocably, to record in your accounts all currencies of "Fresh Money", whether credited or debited, relating to the clearing sessions for "Fresh Money" checks, with the undertaking to secure their value in these accounts upon request based on clearing session entries.

To verify the accuracy of the above information: Board Chairman Signature & Stamp: _______________