Regulatory Alerts2001-05-18 | 7818Regulations on the Control of Financial and Banking Operations for Fighting Money Laundering and Terrorist Financing
The Central Bank of Lebanon, through Basic Decision No. 7818 and Circular No. 83, establishes a comprehensive regulatory framework mandating banks, financial institutions, leasing companies, and prepaid card issuers to implement robust supervisory systems for combating money laundering and terrorist financing. The regulations require financial entities to adopt risk-based due diligence procedures, verify beneficial ownership, maintain detailed transaction records for five years, and promptly report suspicious activities or frozen accounts to the Special Investigation Authority. Furthermore, the framework enforces strict correspondent banking standards, mandates continuous monitoring of cash and electronic operations through specialized software, and obligates institutions to classify clients and transactions according to defined risk levels while preventing the misuse of technological developments.