Exceptional Restrictions on Some Operations Performed by Banks

1253 Text / Section 1 / Decision 159 / Date: 2025-12-31 Basic Circular for Banks No. 159 Also addressed to Supervisory Commissioners

We enclose a copy of Basic Decision No. 13353 dated August 17, 2021, concerning exceptional restrictions on certain operations performed by banks.

Beirut, August 17, 2021 Governor of Banque du Liban Riad T. Salamé

1254

Basic Decision No. 13353 Exceptional Restrictions on Some Operations Performed by Banks

Whereas the Governor of Banque du Liban, pursuant to the Monetary and Credit Law, particularly Articles 70 and 174 thereof, and in view of the exceptional circumstances prevailing in the country, and based on the resolution of the Central Council of Banque du Liban taken in its meeting held on August 3, 2021,

hereby decides as follows:

Article One: First, banks operating in Lebanon are prohibited from crediting foreign currency funds transferred from abroad and/or cash received in foreign currencies, in any form, from or on behalf of their clients, at amounts exceeding their actual value. Second:

Article Two: Banks operating in Lebanon are prohibited from:

1. Purchasing foreign currencies in the market, except in accordance with the provisions of Basic Decision No. 13324 dated May 10, 2021 (Basic Circular No. 157), or from the financial sector or currency exchange institutions licensed by Banque du Liban, in accordance with market supply and demand, provided that margins between the selling price and buying price or any type of commissions do not deviate from customary practices and do not exceed, in all cases as a maximum, 1% of the buying price. [Footnote 1: This clause was repealed by Article One of Interim Decision No. 13557 dated June 20, 2023 (Interim Circular No. 671).] [Footnote 2: This clause was amended by Article One of Interim Decision No. 13716 dated March 27, 2025 (Interim Circular No. 733).]
2. Selling and purchasing checks and bank accounts in foreign currencies or Lebanese Lira on their own behalf, directly or indirectly.
3. Trading in foreign currencies, other than "new funds", with their clients, except in accordance with the exchange rate approved in Banque du Liban's transactions with banks.
4. Issuing certified checks in foreign currencies or Lebanese Lira on behalf of another bank, unless the check includes the beneficiary's name requiring that the check amount be deposited into their account.
5. Selling foreign currencies, other than "cash funds", directly or indirectly, to any party other than Banque du Liban.
6. Purchasing or selling any assets, on their own account, in foreign currencies other than "cash funds" (shares listed on the Beirut Stock Exchange and Lebanese Treasury bonds issued in foreign currencies, among other assets), prior to obtaining Banque du Liban's approval.

Article Two (bis): Banks, when issuing certified checks in Lebanese Lira, must ensure, under their own responsibility, that the purpose of requesting these checks is legitimate (personal or commercial purposes, payment of taxes, fees, and judicial insurance...), so as not to lead to speculation on the national currency. These checks must include the phrase "Payable only to the first beneficiary (non-transferable)."

1255 Text / Section 1 / Decision 159 / Date: 2025-12-31 [Footnotes]

1. This clause was amended by Article One of Interim Decision No. 13532 dated February 6, 2023 (Interim Circular No. 662).
2. This clause was added by Interim Decision No. 13391 dated December 23, 2021 (Interim Circular No. 608), then further amended by Article Two of Interim Decision No. 13557 dated June 20, 2023 (Interim Circular No. 671).
3. This clause was added by Article Two of Interim Decision No. 13532 dated February 6, 2023 (Interim Circular No. 662).
4. This clause was added by Interim Decision No. 13716 dated March 27, 2025 (Interim Circular No. 733).
5. This clause was added by Interim Decision No. 13716 dated March 27, 2025 (Interim Circular No. 733), then amended by Article One of Interim Decision No. 13717 dated April 14, 2025 (Interim Circular No. 734).
6. This clause was added by Interim Decision No. 13716 dated March 27, 2025 (Interim Circular No. 733), then repealed by Article Two of Interim Decision No. 13717 dated April 14, 2025 (Interim Circular No. 734).
7. This clause was added by Interim Decision No. 13532 dated February 6, 2023 (Interim Circular No. 662), then amended by Interim Decision No. 13749 dated September 10, 2025 (Interim Circular No. 742).

1256 Article Three: Banks must declare to the Banking Control Commission, within a maximum deadline of September 15, 2021, the total amount of all operations subject to Clause "First" of Article One and Clauses (1) and (2) of Article Two above, which they have carried out since the year 2019 until the date of issuance of this decision, according to each type of these operations.

Article Four: This decision takes effect immediately upon its issuance. Article Five: This decision shall be published in the Official Gazette.

Beirut, August 17, 2021 Governor of Banque du Liban Riad T. Salamé