Regulatory Alerts2021-12-23 | 13389Circular No. 606 on Electronic Banking and Financial Operations for Banks and Financial Institutions
Issued by the Governor of Bank Lebanon on December 23, 2021, Circular No. 606 amends Basic Decision No. 7548 to mandate comprehensive anti-money laundering and counter-terrorist financing (AML/CFT) due diligence, risk-based monitoring, and reporting obligations for banks, financial institutions, and electronic payment service providers. The circular requires these entities to implement robust internal control systems, maintain accurate records of clients and beneficial owners for at least five years, and promptly report suspicious or frozen transactions to the Financial Intelligence Unit. It further standardizes risk assessment methodologies, enhances oversight of agents and third-party transactions, and aligns domestic electronic banking operations with Financial Action Task Force (FATF) recommendations.