Central Bank of Lebanon Circular No. 478: Amendment of Fundamental Decision No. 6905 on Financial Statements of Money Dealers

Circular No. 478

For Money Exchange Institutions

We hereby enclose a copy of
Central Bank Decision No. 12728 dated 1/12/2017 concerning the amendment of Fundamental Decision No. 6905 dated 21/2/1998 concerning the financial statements of money exchange institutions attached to Fundamental Circular for Money Exchange Institutions No. 1.

Beirut, on 1 January 2017

Governor of the Central Bank of Lebanon

Riad T. Safra

Central Bank Decision No. 12728

Amendment of Fundamental Decision No. 6905 dated 21/2/1998 Concerning the Financial Statements of Money Exchange Institutions

The Governor of the Central Bank of Lebanon,

Pursuant to Law No. 347 dated 6/8/2001 concerning the regulation of the money exchange profession in Lebanon, particularly Article 13 thereof,

And pursuant to Fundamental Decision No. 6905 dated 21/2/1998 and its amendments concerning the financial statements of money exchange institutions,

And pursuant to the decision taken by the Central Council of the Central Bank of Lebanon in its meeting held on 29/11/2017,

Decides as follows:

Article One: The text of Article One of Fundamental Decision No. 6905 dated 21/2/1998 is repealed and replaced by the following text:

"All money exchange institutions operating in Lebanon are required to provide the Banking Control Commission and the Banking Directorate at the Central Bank of Lebanon with two financial statement models attached, as follows:

1. A monthly status (twelve statuses per year) for institutions engaged in cash and/or metal ingot and coin operations ("Precious Metals") and a quarterly status (four statuses per year) for Category "A" institutions and a semi-annual status (two statuses per year) for Category "B" institutions, prepared according to the attached model (0MDBS), submitted within a period of twelve days from the date of the status.
2. An annual final balance sheet prepared according to model (0MDBS) and a profit and loss statement prepared according to model (1MDPL), audited by a supervisory commissioner or a statutory auditor, to be delivered within a period not exceeding the end of April of each year."

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Article Two: The text of Article Two of Fundamental Decision No. 6905 dated 21/2/1998 is repealed and replaced by the following text:

"The data referred to in Article One of this Decision shall be sent as follows:

1. An electronic copy to the Banking Directorate at the Central Bank of Lebanon on compact discs (CD) according to a program obtained from this Directorate.
2. A signed hard copy addressed to both the Banking Control Commission and the Banking Directorate at the Central Bank of Lebanon."

Article Three: The two models (1MD) and (2MD) attached to Fundamental Decision No. 6905 dated 21/2/1998 are repealed and replaced by the models (0MDBS) and (1MDPL) attached to this Decision.

Article Four: This Decision shall enter into force as of the status dated 31 January 2017.

Article Five: This Decision shall be published in the Official Gazette.
Beirut, on 1 January 2017

Governor of the Central Bank of Lebanon

Riad T. Safra

Balance Sheet of Money Exchange Companies 0MDBS Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual

Amounts in thousands of Lebanese Lira

Account Numbers in Lebanese Lira
Equivalent of Foreign Currency in Lira Account Number in Non-Residents Designation Accounting Code Item Code Definition Non-Residents Residents Total Residents Assets 21 101000 Intangible Fixed Assets 0 211 101010 Commercial Enterprise (Goodwill, Customer Base...) 212 101020 Start-up Costs 280 101030 Less: Amortization of Commercial Enterprise - Goodwill 290 101040 Less: Provisions for impairment of Commercial Enterprise 213 101050 Research and Development Costs 214 101060 Patents - Brands and Similar Values 215 101070 Software Programs 218 101080 Fixed Assets with Right of Use Granted 219 101090 Other Intangible Fixed Assets 0 0 2191 101091 Other Intangible Fixed Assets 2198 101092 Advances and Payments for Purchase of Intangible Fixed Assets 281 101100 Less: Amortization of Other Intangible Fixed Assets 291 101110 Less: Provisions for Impairment of Intangible Fixed Assets 22 102000 Tangible Fixed Assets 0 221 102010 Land 223 102020 Buildings 224 102030 Technical Equipment 225 102040 Transport Vehicles 226 102050 Other Tangible Fixed Assets 227 102060 Tangible Fixed Assets under Construction 228 102070 Advances and Payments for Purchase of Tangible Fixed Assets 282 102080 Less: Amortization of Tangible Fixed Assets 292 102090 Less: Provisions for Impairment of Tangible Fixed Assets 25 103000 Financial Fixed Assets 0 251 103010 Participation Certificates 252 103020 Receivables Related to Participations 253 103030 Other Frozen Securities 255 103040 Long and Medium-Term Loans Secured by Realized Profits 258 103050 Investment Securities 0 2581 103051 Shares and Interests with Variable Income 2582 103052 Debt Securities and Financial Values with Variable Income 259 103060 Frozen Receivables and Financial Collateral 0 2591 103061 Collateral Given 289 103070 Less: Amortization of Other Financial Fixed Assets 295 103080 Less: Provisions for Impairment of Financial Fixed Assets Less: Amortization of Leased Fixed Assets 284 103090 Loan

Less: Provisions for Leased Fixed Assets 294 103100 Loan 26 104000 Fixed Assets Recovered from Doubtful Operations 0 261 104010 Financial Fixed Assets Recovered from Doubtful Operations Less: Provisions for Financial Fixed Assets Recovered as Collateral 296 104020 for Debt 262 104030 Tangible Fixed Assets Recovered from Doubtful Operations Less: Amortization of Fixed Assets Recovered as Collateral 286 104040 for Doubtful Operations

Balance Sheet of Money Exchange Companies 0MDBS Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual

Amounts in thousands of Lebanese Lira

Account Numbers in Lebanese Lira
Equivalent of Foreign Currency in Lira Account Number in Non-Residents Designation Accounting Code Item Code Definition Non-Residents Residents Total Residents Assets 27 105000 Revaluation Differences 0 Revaluation Differences for Non-Depreciable Fixed Assets 271 105010 Revaluation Differences for Depreciable Fixed Assets 272 105020 31 106000 Inventory of Materials and Consumables 0 0 311 106010 Stamps 315 106020 Other Materials and Consumables 391 106030 Less: Provisions for Materials and Consumables 36 107000 Foreign Currency Exchange Operations (/+) - 0 363 107010 Exchange Centers 364 107020 Foreign Currency Centers - Equivalent in Lebanese Lira 37 108000 Closing Inventory (Metals and Ingots) 0 371 108010 Precious Metals Inventory 372 108020 Ingots Inventory 373 108030 Other Metals Inventory 375 108040 Metals in Transit 376 108050 Metals (Scrap) 39 109000 Less: Provisions for Inventory Impairment 0 397 109010 Less: Provisions for Precious Metals and Ingots 0 0 3971 109011 Less: Metals 3972 109012 Less: Ingots 3973 109019 Less: Other Metals 41 110000 Debit Current Accounts 0 411 110010 Receivables - Cash Exchange Operations (Temporary) 0 4111 110011 Companies - Money Exchange 4112 110012 Individuals - Money Exchange 4113 110013 Individual Money Changers Accounts 412 110020 Values and Transfers for Collection 419 110030 Doubtful Receivable Accounts 491 110040 Less: Provisions for Impairment of Receivables - Money Changers 42 111000 Users 0 428 111010 User Debit Accounts 0 0 4281 111011 Advances and Payments to Users 4282 111012 Reservations 43 112000 Social Security Institutions 0 438 112010 Receivables from Social Security Institutions 45 113000 Debit Partner and Shareholder Accounts 0 451 113010 Debit Current Partner Accounts 0 0 4511 113011 Debit Sister Companies 4515 113012 Debit Partner Accounts 459 113020 Debit Partner Receivables 0 0 4591 113021 Unsubscribed Capital Not Called 4592 113022 Called and Unpaid Subscribed Capital 4597 113029 Other Debit Receivables 495 113030 Less: Provisions for Impairment of Partner Accounts

Balance Sheet of Money Exchange Companies 0MDBS Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual

Amounts in thousands of Lebanese Lira

Account Numbers in Lebanese Lira
Equivalent of Foreign Currency in Lira Account Number in Non-Residents Designation Accounting Code Item Code Definition Non-Residents Residents Total Residents Assets 46 114000 Various Receivables 0 468 114010 Various Debtors - Non-Investment 469 114020 Various Debtors - Outside Investment 49 115000 Less: Provisions to Face Impairment of Receivable Accounts 0 496 115010 Less: Provisions for Impairment of Various Debit Receivable Accounts 0 0 4968 115011 Less: Various Debtors - Non-Investment 4969 115012 Less: Various Debtors - Outside Investment 47 116000 Clearing Accounts 0 471 116010 Expenses to be Allocated Over Several Periods 0 0 4711 116011 Pre-Investment Expenses 4712 116012 Major Repairs to be Amortized 4713 116013 Bond Repayment Installments 4719 116019 Other Expenses to be Allocated Over Several Financial Periods 472 116020 Accrued Expenses 48 117000 Temporary and Clearing Accounts 0 481 117010 Periodic Distribution of Expenses Accounts 483 117020 Periodic Distribution of Various Expenses Accounts 50 118000 Cash 0 501 118010 Cash in Hand 502 118020 Cash in Custody 503 118030 Cash in Transit 505 118040 Precious Metals and Ingots - Acquisition Less: Provisions for Impairment of Precious Metals and Ingots Inventory 293 118050

51 119000 Central Bank of Lebanon - Issuing Institution 0 511 119010 Central Bank of Lebanon - Demand Funds 512 119090 Central Bank of Lebanon - Other Debit Accounts 52 120000 Lebanese Treasury Bills 0 521 120010 Treasury Bills in Lebanese Lira 522 120020 Treasury Bills in Foreign Currency 523 120090 Other Treasury Bills 53 121000 Commercial Banks 0 531 121010 Demand Debit Accounts 532 121020 Time Deposits at Banks 533 121030 Checks and Vouchers for Collection 55 122000 Registered Financial Institutions 0 551 122010 Demand Accounts 552 122020 Time Deposits 58 123000 Purchased Financial Values 0 581 123010 Purchased Checks 199999 Total Assets 0

Balance Sheet of Money Exchange Companies 0MDBS Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual

Amounts in thousands of Lebanese Lira

Account Numbers in Lebanese Lira
Equivalent of Foreign Currency in Lira Account Number in Non-Residents Designation Accounting Code Item Code Definition Non-Residents Residents Total Residents Liabilities 10 201000 Capital 0 101 201010 Capital (For Company or Individual) 0 1011 201011 Unsubscribed Capital Not Called 1012 201012 Called and Unpaid Subscribed Capital 1013 201013 Called and Paid Subscribed Capital 102 201020 Issuance and Merger Premiums and Advances 103 201030 Revaluation and Valuation Differences 0 0 Revaluation Differences for Non-Depreciable Fixed Assets 1031 201031 1035 201032 Revaluation Differences for Depreciable Fixed Assets 109 201040 Owner's Personal Account 11 202000 Reserves 0 111 202010 Legal Reserve 112 202020 Regulatory and Contractual Reserves 119 202090 Other Reserves 12 203000 Brought Forward Previous Results 0 121 203010 Brought Forward Previous Results - Credit 125 203020 Less: Brought Forward Previous Results - Debit 13 204000 Net Result of the Financial Year (Profit or Loss) 0 137 204010 Year Result - Activities Outside Money Exchange Business 138 204020 Year Result - Profits 139 204030 Less: Year Result - Losses 14 205000 Grants for Investments 0 141 205010 Grants for Investments Received 145 205020 Grants for Investments Transferred to Results 15 206000 Provisions for Risks and Charges 0 151 206010 Provisions for Risks 0 0 1511 206011 Provisions for Various Disputes and Contingencies 1513 206012 Provisions for Exchange Rate Fluctuations 1515 206013 Provisions for Fines and Penalties 1519 206019 Provisions for Various Risks 155 206020 Provisions for Charges 0 0 1551 206021 Provisions for Expenses to be Allocated Over Several Financial Periods 1552 206022 Provisions for Pensions and Similar Obligations 1553 206023 Provisions for Taxes 1554 206024 Provisions for Exchange Compensation and End of Service 1559 206029 Provisions for Various Charges 16 207000 Long and Medium-Term Financial Debts 0 161 207010 Loans for Bond Issues 162 207020 Loans from Lending Institutions 163 207030 Conditional Loans on Money Exchange Operations (Article 10 of Law 347) 0 1631 207031 Conditional Loans from Shareholders and Partners 164 207040 Medium and Long-Term Loans with Banks 0 1641 207041 Medium and Long-Term Loans with Banks 1642 207049 Other Loans 168 207090 Various Loans and Debts

Balance Sheet of Money Exchange Companies 0MDBS Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual

Amounts in thousands of Lebanese Lira

Account Numbers in Lebanese Lira
Equivalent of Foreign Currency in Lira Account Number in Non-Residents Designation Accounting Code Item Code Definition Non-Residents Residents Total Residents Liabilities 18 208000 Accounts Relating to Institutions, Branches and Participating Companies 0 0 0 181 208010 Accounts Relating to Institutions, Branches and Participating Companies 186 208020 Less: Assets and Services Exchanged Between Branches - Expenses 187 208030 Assets and Services Exchanged Between Branches - Revenues 25 209000 Fixed Financial Liabilities 0 259 209010 Frozen Receivables and Financial Collateral 0 2592 209011 Collateral Received 40 210000 Credit Current Accounts 0 401 210010 Payables - Cash Exchange Operations (Temporary) 0 4011 210011 Companies - Money Exchange 4012 210012 Individuals - Money Exchange 4013 210013 Individual Money Changers Accounts 402 210020 Values and Transfers for Payment 0 4021 210021 Transfers 4022 210022 Certified Checks 4023 210023 Payment Orders 4024 210024 Checks for Payment 4025 210025 Other Values for Payment 403 210030 Fixed Asset Suppliers 0 4031 210031 Supplier Invoices 4035 210032 Payment Instruments 42 211000 Users 0 421 211010 Payables to Users 0 0 4282 211011 User Reservations 43 212000 Social Security Institutions 0 431 212010 Payables to Social Security Institutions 0 0 4311 212011 Payments Made 4315 212012 Payment Instruments - Social Security Institutions 4318 212013 Expenses to be Recognized - Social Security Institutions 44 213000 The State and Public Institutions 0 441 213010 Taxes Payable on Investment 443 213020 Taxes Payable Outside Investment 0 0 4431 213021 Taxes on Profits 445 213090 The State and Public Institutions (Other Payables) 45 214000 Credit Partner and Shareholder Accounts 0 451 214010 Credit Current Partner Accounts 0 0 4511 214011 Credit Sister Companies 4515 214012 Credit Partner Accounts 453 214020 Credit Dividends Payable 455 214030 Other Credit Payables to Partners 0 0 4551 214031 Company Advances Accounts 4552 214032 Capital to be Returned to Partners 4557 214039 Other Credit Payables 46 215000 Various Payables 0 461 215010 Other Credit Investment Payables 0 4618 215011 Various Credit Accounts - Outside Investment 4619 215012 Various Credit Accounts - Investment

Balance Sheet of Money Exchange Companies 0MDBS Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual

Amounts in thousands of Lebanese Lira

Account Numbers in Lebanese Lira
Equivalent of Foreign Currency in Lira Account Number in Non-Residents Designation Accounting Code Item Code Definition Non-Residents Residents Total Residents Liabilities 47 216000 Clearing Accounts 0 Accrued Expenses 472 216010 473 216020 Accrued Revenues 474 216030 Payable Expenses 48 217000 Temporary and Clearing Accounts 0 482 217010 Periodic Distribution of Revenues Accounts 483 217020 Periodic Distribution of Other Accounts 53 218000 Commercial Banks 0 531 218010 Credit Demand Accounts 299999 Total Liabilities 0

Balance Sheet of Money Exchange Companies 0MDBS Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual

Amounts in thousands of Lebanese Lira

Account Numbers in Lebanese Lira
Equivalent of Foreign Currency in Lira Account Number in Non-Residents Designation Accounting Code Item Code Definition Non-Residents Residents Total Residents Off-Balance Sheet 80 301000 Given Signed Commitments 0 801 301010 Guarantees Given to Money Changers 802 301020 Commitments and Signed Contracts for Money Changers 803 301030 Guarantees and Signatures Given to the State and Public Sector 81 302000 Received Signed Commitments 0 811 302010 Guarantees Received from Money Changers 812 302020 Commitments and Contracts Received from Money Changers 813 302030 Guarantees and Contracts Received from the State and Public Sector 83 303000 Institution Assets Given to Others as Collateral 0 84 304000 Board Member Guarantees 0 841 304010 Guarantee Shares for Management 842 304020 Other Guarantees Related to Shareholders 85 305000 In-Kind Guarantees 0 86 306000 Values in Custody (In Safekeeping) 0 861 306010 Precious Metals 862 306020 Bonds and Shares 87 307000 Values for Collection 0 871 307010 Values Received for Collection 872 307020 Values Given for Collection 88 308000 Insurance Policies 0 10 10 881 308010 Money and Metal Shipment Insurance 10 10 882 308090 Other Insurance Policies 399999 Total Off-Balance Sheet 0 0 10 0 10

Profit and Loss Statement 1MDPL
Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual
Account Number in
Designation
Amounts in thousands of Lebanese Lira Item Code Accounting Code Lebanese Lira Revenues 70 10100 Sales of Goods and Services 0 701 10110 Sales of Metals and Ingots 0 7011 10111 Metals 7012 10112 Ingots 702 10120 Money Shipment Revenues 703 10130 Money Transfer Revenues 704 10140 Commissions Received on Checks 705 10150 Other Received Commissions 71 10200 Exchange Profits 0 711 10210 Currency Exchange Profits 712 10220 Precious Metals Exchange Profits 6019 10230 Less: Earned Discounts 713 10240 Treasury Bill Interest 714 10250 Sub-Activity Revenues 719 10290 Other Revenues 75 10300 Recoveries from Provisions for Investment 76 10400 Other Investment-Generated Revenues 0 761 10410 Other Ordinary Revenues 765 10420 Share of Profits from Other Operations 77 10500 Financial Revenues 0 773 10510 Interest and Similar Revenues 0 7731 10511 Returns on Granted Loans 7732 10519 Various Interest and Revenues 775 10520 Positive Exchange Differences 776 10530 Other Financial Recoveries 779 10540 Recoveries from Financial Provisions 78 10600 Non-Investment Revenues 0 781 10610 Revenues from Disposal of Fixed Assets 782 10620 Grants Transferred from Parent Company, Head Office or Shareholders 788 10630 Other Non-Investment Revenues 789 10640 Recoveries from Non-Investment Provisions 19999 Total Revenues 0

Profit and Loss Statement 1MDPL
Status:
Status as of YYYY/MM/DD:
Company Name:
Company Number on the List of Money Exchange Institutions at the Central Bank of Lebanon:
Annual
Account Number in
Designation
Amounts in thousands of Lebanese Lira Item Code Accounting Code Lebanese Lira Expenses 60 20100 Purchases and Change in Inventory 0 601 20110 Purchases of Metals and Ingots 0 6018 20111 Additional Expenses on Purchases 718 20120 Less: Discounts Granted 602 20130 Cost of Money Shipment 603 20140 Cost of Money Transfer 604 20150 Check Collection Commission 605 20160 Change in Inventory Value 0 6051 20161 Opening Inventory 6052 20162 Less: Closing Inventory 61 20200 Exchange Losses 0 611 20210 Currency Exchange Losses (Account per Currency) 612 20220 Precious Metals Exchange Losses 613 20230 Purchase of Materials and Consumables 615 20240 Change in Inventory Value of Materials and Consumables 0 6151 20241 Opening Inventory 6152 20242 Less: Closing Inventory 62 20300 Other External Expenses 0 625 20310 Rent 626 20320 External Services 0 6261 20321 Transport and Communications 6262 20322 Maintenance and Repairs 6263 20323 Leases (Building Services) 6264 20324 Hotel and Restaurant Services 6265 20325 User Services 6266 20326 Educational Services 6267 20327 Studies and Research 6268 20328 Insurance Premiums 6269 20329 Other External Services 63 20400 User Expenses 0 631 20410 Salaries and Wages of Users 635 20420 Social Expenses (Social Security...) 64 20500 Taxes, Fees and Similar Payments 65 20600 Investment Amortization and Provisions 0 651 20610 Amortization Provisions 655 20620 Provision Provisions 66 20700 Other Ordinary Administrative Expenses 0 661 20710 Other Administrative Expenses 665 20720 Share of Losses from Other Operations 67 20800 Financial Expenses 0 673 20810 Interest and Similar Expenses 675 20820 Negative Exchange Differences 676 20830 Net Expenses on Disposal of Investment Securities 679 20840 Financial Amortization and Provision Expenses 68 20900 Non-Investment Expenses 0 681 20910 Book Value of Disposed Fixed Assets 685 20920 Other Non-Investment Expenses 0 6851 20921 Expenses on Institution Management Operations 6855 20922 Expenses on Capital Operations 689 20930 Non-Investment Amortization and Provision Expenses 69 21000 Taxes on Profits 29999 Total Expenses 0

39999 Profit and Loss Statement (Total Revenues - Total Expenses) 0