Regulatory Alerts2022-03-29 | 13424Conditions for Establishing and Operating Financial Institutions
The Governor of the Central Bank of Lebanon issued Circular Decision No. 13424 to amend Basic Decision No. 7136 by adding a provision that automatically strikes off financial institutions from the statutory list if they cease operations for six consecutive months, deeming their licenses cancelled. This amendment takes immediate effect upon issuance and mandates official gazette publication to ensure regulatory compliance across all licensed financial entities. The Central Bank Council approved the measure during its March 23, 2022 meeting under Articles 70 and 182 of the Monetary and Banking Law.
Circular No. 617 for Financial Institutions
We enclose a copy of Circular Decision No. 13424 dated March 29, 2022, regarding the amendment of Basic Decision No. 7136 dated October 22, 1998 (conditions for establishing and operating financial institutions), attached to Basic Circular No. 2.
Beirut, March 29, 2022
Governor of the Central Bank of Lebanon Riad Salameh
Circular Decision No. 13424
Amendment of Basic Decision No. 7136 dated October 22, 1998
Regarding the conditions for establishing and operating financial institutions
The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Banking Law, particularly Articles 182 and 70 thereof; Pursuant to Basic Decision No. 7136 dated October 22, 1998, and its amendments regarding the conditions for establishing and operating financial institutions; Pursuant to the decision of the Central Bank Council taken in its meeting held on March 23, 2022;
Decides as follows:
Article 1: A paragraph with the following text is added to Article 3 of Basic Decision No. 7136 dated October 22, 1998:
"A financial institution shall be struck off the list specified in Article 181 of the Monetary and Banking Law if it ceases to carry out its activities for a consecutive period of six months, and the license granted to it shall be deemed cancelled."
Article 2: This decision shall take effect upon its issuance.
Article 3: This decision shall be published in the Official Gazette.
Beirut, March 29, 2022 Governor of the Central Bank of Lebanon Riad Salameh