Circular No. 502

For Banks, Financial Institutions, and Institutions Engaging in Financial and Banking Operations via Electronic Means

Attached is a copy of Central Bank Decision No. 12850 dated 3/8/2018 concerning the amendment of the Basic Decision No. 7548 dated 30/3/2000 (Financial and Banking Operations via Electronic Means) attached to Basic Circular No. 69.

Beirut, 3 August 2018

Governor of the Central Bank of Lebanon

Riad T. Salam

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Central Bank Decision No. 12850

Amendment of Basic Decision No. 7548 dated 30/3/2000

Concerning Financial and Banking Operations via Electronic Means

The Governor of the Central Bank of Lebanon,

Pursuant to the Monetary and Discount Law, particularly Article 70 thereof, Pursuant to Law No. 133 dated 26/10/1999 concerning the tasks of the Central Bank of Lebanon, And pursuant to Basic Decision No. 7548 dated 30/3/2000 and its amendments concerning Financial and Banking Operations via Electronic Means, And pursuant to the decision of the Central Council of the Central Bank of Lebanon taken in its session held on 25/7/2018,

Decides as follows:

Article One

The text of "Article 16" of Basic Decision No. 7548 dated 30/03/2000 is repealed and replaced with the following text:

"First: Non-bank institutions performing electronic money transfer operations must provide:

1. The Exchange Directorate at the Central Bank of Lebanon and the Banking Supervision Committee with the reports of the annual supervisory auditors referred to in Item (3) of "Article 4" and Items (18) and (19) of "Article 5" above, within a maximum period of the end of April of each year.
2. The Legal Affairs Directorate and the Exchange Directorate at the Central Bank of Lebanon and the Banking Supervision Committee with a certified copy of the insurance contract referred to in Item (17) of "Article 5" of this Decision, upon its renewal.

Second: Institutions specified in Article 2 of this Decision must provide the Legal Affairs Directorate, the Exchange Directorate at the Central Bank of Lebanon, and the Banking Supervision Committee with the information referred to in paragraph (b) of Item (11) of "Article 5" above, according to the attached model (CET-0), which must be prepared every six months on a magnetic diskette according to a program obtained from the Exchange Directorate at the Central Bank of Lebanon."

Article Two

The text of "Article 17" of Basic Decision No. 7548 dated 30/03/2000 is repealed and replaced with the following text:

"Institutions specified in Items (2), (3), and (4) of "Article 2" of this Decision, authorized to perform electronic cash transfer operations, must provide:

1. The Exchange Directorate at the Central Bank of Lebanon and the Banking Supervision Committee:
   • a) Reports of the annual supervisory auditors regarding their financial status, within a maximum period of the end of April of each year.
   • b) A list of shareholders of institutions established in Lebanon at the end of each year and upon any modification occurring to this list.
2. The Statistics and Economic Research Directorate, the Exchange Directorate at the Central Bank of Lebanon, and the Banking Supervision Committee, on a magnetic diskette (CD):
   • a) Their monthly financial data referred to in "Article 10" of this Decision within a period of twelve days from the date these data are suspended.
   • b) The attached model (CET-1) in the format of the Profit and Loss Statement prepared according to the attachment of Basic Decision No. 6574 dated 24/4/1997, within a maximum period of the end of June of each year."

Article Three

"Article 17 bis" of Basic Decision No. 7548 dated 30/03/2000 is repealed.

Article Four

The text of "Article 18" of Basic Decision No. 7548 dated 30/03/2000 is repealed and replaced with the following text:

"First: Institutions specified in "Article 2" of this Decision, which perform electronic money transfer operations, must inform the Exchange Directorate at the Central Bank of Lebanon:

1. Within the first ten days of each month, regarding:
   • a) The volume of these operations to and from Lebanon during the past month, according to the attached model (CET-2), to be prepared on a magnetic diskette according to a program obtained from the Information Technology Directorate at the Central Bank of Lebanon.
   • b) Operations amounting to or exceeding the equivalent of 10,000 USD, according to the attached model (CET-3), to be prepared on a magnetic diskette according to a program obtained from the Exchange Directorate at the Central Bank of Lebanon.
   • c) Operations specified in the attached model (CET-4), to be prepared on a magnetic diskette according to a program obtained from the Information Technology Directorate at the Central Bank of Lebanon.
2. During the month of January of each year, regarding the annual status of guarantees given and received by these institutions, according to the attached model (CET-5), to be prepared on a magnetic diskette according to a program obtained from the Information Technology Directorate at the Central Bank of Lebanon.

Second: Institutions registered with the Central Bank of Lebanon (banks, financial institutions, exchange institutions...) acting as websites/service points for money transfer operations of institutions authorized or permitted to practice electronic money transfer operations must inform the Exchange Directorate at the Central Bank of Lebanon within the first ten days of each month regarding the movement of these operations according to the attached model (CET-6), to be prepared on a magnetic diskette according to a program obtained from this Directorate."

Article Five

The following text is added to Basic Decision No. 7548 dated 30/03/2000 as "Article 21 bis":

"Article 21 bis

First: Institutions specified in "Article 2" of Basic Decision No. 7548 dated 30/3/2000 must keep a special register for electronic money transfer operations for unclaimed external remittances sent to the beneficiary after 90 days from their dispatch.

Second: Adopt the following mechanism and procedures:

1. Coordination with the contracted international company to recover the basis of the unclaimed and unpaid remittance.
2. Depositing the recovered amount in a special account opened in their name in US Dollars at one of the banks operating in Lebanon.
3. Notifying the sending customer of the non-receipt of the funds by the beneficiary after the expiration of 90 days from the date of dispatch.
4. Granting the sending customer the right to request the refund of the remitted amount within a maximum period of 3 years from the date of dispatch.
5. The Lebanese State is entitled to fifty percent (50%) of the remaining amounts in the aforementioned account after the expiration of the legal limitation period, and the concerned institution is entitled to dispose of the remaining fifty percent and transfer it to the Profit and Loss account.
6. The sending customer must be informed of the aforementioned mechanism clearly on the back of the receipt given to the recipient, containing the information included in the transfer order, in Arabic in addition to a foreign language chosen by the concerned institution.

Third: Provide the Exchange Directorate at the Central Bank of Lebanon and the Banking Supervision Committee, within a maximum period of the end of January annually, with information on external electronic money transfer operations executed during the past year which have not been claimed by the beneficiary after 90 days.

Fourth: Provide the Exchange Directorate at the Central Bank of Lebanon and the Banking Supervision Committee, within a maximum period of 30/11/2018, with information on electronic money transfer operations from Lebanon to abroad executed during the previous three years which have not been claimed by the beneficiary after 90 days."

Article Six

The text of model (CET-0) attached to Basic Decision No. 7548 dated 30/03/2000 is repealed and replaced with the table attached to this Decision.

Article Seven

This Decision shall enter into force upon its issuance.

Article Eight

This Decision shall be published in the Official Gazette.

Beirut, 3 August 2018

Governor of the Central Bank of Lebanon

Riad T. Salam

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Central Bank of Lebanon
Exchange Directorate
Electronic Money Transfer Operations Centers (Sales of Point)

Model (CET-0) - Semi-Annual Status as of ............./......./........

Name of Bank or Institution:
Bank or Institution Number:
License Number (Money Transfers):
License Date:

Center Number	Center Opening Date	Center Closing Date	Court	City/Village	Street/Building	Responsible Person Name	Commercial Phone Number	Registration Number in the Central Bank Registry	Institution Number*	Institution Type	Number	Name of Center
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Institution Type:

• Bank
• Financial Institution
• Exchange Institution
• Specialized Institution for Electronic Money Transfers

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Central Bank of Lebanon - Exchange Directorate Movement of External and Internal Electronic Financial Cash Operations (CET-3) Monthly Status as of //____

Bank or Institution Number:
Name of Bank or Institution:
Amounts in Thousands of Lebanese Lira

Item Number	Item Definition	Accounts in L.L.	Equivalent in Foreign Currency	Commission	Number	Non-Residents	Residents	Non-Residents	Residents
11000	Electronic Transfers - In Cash
11110	Money Transfer Abroad - Status at end of previous month	B	B	P
11120	Money Transfer Abroad - Funds transferred abroad in current month	N	N	P	P
11130	Money Transfer Abroad - Funds received in Lebanon in current month				P
11180	Money Transfer Abroad - Cash account settlement in current month	B	B	P
11190	Money Transfer Abroad - Status at end of current month	B	B	P
11210	Money Transfer within Lebanon - Status at end of previous month				B	P
11220	Money Transfer within Lebanon - Funds paid in current month				N	P	P
11230	Money Transfer within Lebanon - Funds collected in current month					P
11290	Money Transfer within Lebanon - Status at end of current month				B	P
12000	Other Transfers - In Cash
12110	Collection of funds for Public Sector - Status at end of previous month				B	P
12120	Collection of funds for Public Sector - Funds paid in current month				N	P	P
12130	Collection of funds for Public Sector - Funds collected in current month					P
12190	Collection of funds for Public Sector - Status at end of current month				B	P
12210	Collection of funds for Banking Sector - Status at end of previous month				B	P
12220	Collection of funds for Banking Sector - Funds paid in current month				N	P	P
12230	Collection of funds for Banking Sector - Funds collected in current month					P
12290	Collection of funds for Banking Sector - Status at end of current month				B	P
12310	Collection of funds for Financial Sector (Non-Banks) - Status at end of previous month				B	P
12320	Collection of funds for Financial Sector (Non-Banks) - Funds paid in current month				N	P	P
12330	Collection of funds for Financial Sector (Non-Banks) - Funds collected in current month					P
12390	Collection of funds for Financial Sector (Non-Banks) - Status at end of current month				B	P
12410	Collection of funds for Private Sector - Status at end of previous month				B	P
12420	Collection of funds for Private Sector - Funds paid in current month				N	P	P
12430	Collection of funds for Private Sector - Funds collected in current month					P
12490	Collection of funds for Private Sector - Status at end of current month				B	P
12510	Repayment of funds by order of Public Sector - Status at end of previous month				B	P
12520	Repayment of funds by order of Public Sector - Funds paid in current month				N	P	P
12530	Repayment of funds by order of Public Sector - Funds collected in current month					P
12590	Repayment of funds by order of Public Sector - Status at end of current month				B	P
12610	Repayment of funds by order of Banking Sector - Status at end of previous month				B	P
12620	Repayment of funds by order of Banking Sector - Funds paid in current month				N	P	P
12630	Repayment of funds by order of Banking Sector - Funds collected in current month					P
12690	Repayment of funds by order of Banking Sector - Status at end of current month				B	P
12710	Repayment of funds by order of Financial Sector (Non-Banks) - Status at end of previous month				B	P
12720	Repayment of funds by order of Financial Sector (Non-Banks) - Funds paid in current month				N	P	P
12730	Repayment of funds by order of Financial Sector (Non-Banks) - Funds collected in current month					P
12790	Repayment of funds by order of Financial Sector (Non-Banks) - Status at end of current month				B	P
12810	Repayment of funds by order of Private Sector - Status at end of previous month				B	P
12820	Repayment of funds by order of Private Sector - Funds paid in current month				N	P	P
12830	Repayment of funds by order of Private Sector - Funds collected in current month					P
12890	Repayment of funds by order of Private Sector - Status at end of current month				B	P
19990	Total Balances at end of period - In Cash				B	P

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Central Bank of Lebanon - Exchange Directorate Movement of External and Internal Electronic Financial Cash Operations (CET-3) Monthly Status as of //____

Bank or Institution Number:
Name of Bank or Institution:
Amounts in Thousands of Lebanese Lira

Item Number	Item Definition	Accounts in L.L.	Equivalent in Foreign Currency	Commission	Number	Non-Residents	Residents	Non-Residents	Residents
21000	Electronic Transfers - In Bank Accounts
21110	Money Transfer Abroad - Status at end of previous month				B	B	P
21120	Money Transfer Abroad - Funds transferred abroad in current month				N	N	P	P
21130	Money Transfer Abroad - Funds received in Lebanon in current month						P
21180	Money Transfer Abroad - Account settlement in current month				B	B	P
21190	Money Transfer Abroad - Status at end of current month				B	B	P
21210	Money Transfer within Lebanon - Status at end of previous month				B	P
21220	Money Transfer within Lebanon - Funds paid in current month				N	P	P
21230	Money Transfer within Lebanon - Funds collected in current month					P
21290	Money Transfer within Lebanon - Status at end of current month				B	P
22000	Other Transfers - In Bank Accounts
22110	Collection of funds for Public Sector - Status at end of previous month				B	P
22120	Collection of funds for Public Sector - Funds paid in current month				N	P	P
22130	Collection of funds for Public Sector - Funds collected in current month					P
22190	Collection of funds for Public Sector - Status at end of current month				B	P
22210	Collection of funds for Banking Sector - Status at end of previous month				B	P
22220	Collection of funds for Banking Sector - Funds paid in current month				N	P	P
22230	Collection of funds for Banking Sector - Funds collected in current month					P
22290	Collection of funds for Banking Sector - Status at end of current month				B	P
22310	Collection of funds for Financial Sector (Non-Banks) - Status at end of previous month				B	P
22320	Collection of funds for Financial Sector (Non-Banks) - Funds paid in current month				N	P	P
22330	Collection of funds for Financial Sector (Non-Banks) - Funds collected in current month					P
22390	Collection of funds for Financial Sector (Non-Banks) - Status at end of current month				B	P
22410	Collection of funds for Private Sector - Status at end of previous month				B	P
22420	Collection of funds for Private Sector - Funds paid in current month				N	P	P
22430	Collection of funds for Private Sector - Funds collected in current month					P
22490	Collection of funds for Private Sector - Status at end of current month				B	P
22510	Repayment of funds by order of Public Sector - Status at end of previous month				B	P
22520	Repayment of funds by order of Public Sector - Funds paid in current month				N	P	P
22530	Repayment of funds by order of Public Sector - Funds collected in current month					P
22590	Repayment of funds by order of Public Sector - Status at end of current month				B	P
22610	Repayment of funds by order of Banking Sector - Status at end of previous month				B	P
22620	Repayment of funds by order of Banking Sector - Funds paid in current month				N	P	P
22630	Repayment of funds by order of Banking Sector - Funds collected in current month					P
22690	Repayment of funds by order of Banking Sector - Status at end of current month				B	P
22710	Repayment of funds by order of Financial Sector (Non-Banks) - Status at end of previous month				B	P
22720	Repayment of funds by order of Financial Sector (Non-Banks) - Funds paid in current month				N	P	P
22730	Repayment of funds by order of Financial Sector (Non-Banks) - Funds collected in current month					P
22790	Repayment of funds by order of Financial Sector (Non-Banks) - Status at end of current month				B	P
22810	Repayment of funds by order of Private Sector - Status at end of previous month				B	P
22820	Repayment of funds by order of Private Sector - Funds paid in current month				N	P	P
22830	Repayment of funds by order of Private Sector - Funds collected in current month					P
22890	Repayment of funds by order of Private Sector - Status at end of current month				B	P
29990	Total Balances at end of period - In Bank Accounts				B	P

Must Match:

• Item 29990 (Total Balances at end of period - Bank Accounts) = Item 35562 (Balances held for third parties at banks) from the Balance Sheet.
• Item 19990 (Total Balances at end of period - Cash) = Item 35561 (Balances held for third parties in cash) from the Balance Sheet.

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AFTER ENTRY CONTROL CET-3 Validation rules (entry)

CET-3 BS-2010-0 (M) item 11190 = 11110 + 11120 + 11130 + 11180 19990 = 35561 11290 = 11210 + 11220 + 11230 29990 = 35562 12190 = 12110 + 12120 + 12130 12290 = 12210 + 12220 + 12230 12390 = 12310 + 12320 + 12330 12490 = 12410 + 12420 + 12430 12590 = 12510 + 12520 + 12530 12690 = 12610 + 12620 + 12630 12790 = 12710 + 12720 + 12730 12890 = 12810 + 12820 + 12830 19990 = 11190 + 11290 + 12190 + 12290 + 12390 + 12490 + 12590 + 12690 + 12790 + 12890 21190 = 21110 + 21120 + 21130 + 21180 21290 = 21210 + 21220 + 21230 22190 = 22110 + 22120 + 22130 22290 = 22210 + 22220 + 22230 22390 = 22310 + 22320 + 22330 22490 = 22410 + 22420 + 22430 22590 = 22510 + 22520 + 22530 22690 = 22610 + 22620 + 22630 22790 = 22710 + 22720 + 22730 22890 = 22810 + 22820 + 22830 29990 = 21190 + 21290 + 22190 + 22290 + 22390 + 22490 + 22590 + 22690 + 22790 + 22890

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Central Bank of Lebanon - Exchange Directorate Status of Guarantees Given and Received by Banks or Institutions Engaging in Financial Operations via Electronic Means (Money Transfers and Collection/Repayment of Funds under Contracts)

(CET-4) Annual Status as of .../.../.....

Bank or Institution Number:
Name of Bank or Institution:
Amounts in Thousands of Lebanese Lira

Accounts in L.L. | Equivalent in Foreign Currency | Number | Item Number | Guarantees Given (Cash or Bank Guarantees)

Total	Residents	Non-Residents	Residents	Non-Residents	Institutions
11000	Guarantees Given to International Transfer Network Companies (Electronic Money Transfers)	P
11020	Bank Guarantees
12100	Guarantees Given to Public Sector - Collection Guarantees under Contracts	P
12110	Cash
12120	Bank Guarantees
12200	Guarantees Given to Banking Sector - Collection Guarantees under Contracts	P
12210	Cash
12220	Bank Guarantees
12300	Guarantees Given to Private Sector - Collection Guarantees under Contracts	P
12310	Cash
12320	Bank Guarantees
12400	Guarantees Given to Other Sectors - Collection Guarantees under Contracts	P
12410	Cash
12420	Bank Guarantees
19000	Total Guarantees Given	P
19010	Total Cash Guarantees Given	P
19020	Total Bank Guarantee Guarantees Given	P

Amounts in Thousands of Lebanese Lira

Accounts in L.L. | Equivalent in Foreign Currency | Number | Item Number | Guarantees Received (Cash or Bank Guarantees)

Total	Residents	Non-Residents	Residents	Non-Residents	Institutions
21000	Guarantees Received from Sales Points (Electronic Money Transfers)	P
21010	Cash
21020	Bank Guarantees
22100	Guarantees Received from Public Sector - Repayment Guarantees under Contracts	P
22110	Cash
22120	Bank Guarantees
22200	Guarantees Received from Banking Sector - Repayment Guarantees under Contracts	P
22210	Cash
22220	Bank Guarantees
22300	Guarantees Received from Private Sector - Repayment Guarantees under Contracts	P
22310	Cash
22320	Bank Guarantees
22400	Guarantees Received from Other Sectors - Repayment Guarantees under Contracts	P
22410	Cash
22420	Bank Guarantees
29000	Total Guarantees Received	P
29010	Total Cash Guarantees Received	P
29020	Total Bank Guarantee Guarantees Received	P

Note: Electronic Guarantees Given and Received - (These are collection and repayment guarantees under contracts, noting that collection and repayment are settled either in cash or in the account).

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CET-4 Validation rules (entry)

CET-4 AFTER ENTRY CONTROL vs. 2010-0 Yearly

cet4-item	bs-2010-0 item	cet4-item	cet4-item
11020 = 30170	11000 = 11020
12120 = 30521	12100 = 12110 + 12120
12210 = 10450 + 10550	12200 = 12210 + 12220
12220 = 30115	12300 = 12310 + 12320
12320 = 30215	12400 = 12410 + 12420
12420 = 30260	19010 = 12110 + 12210 + 12310 + 12410
19010 = 10550+10450+12125+12115	19020 = 11020 + 12120 + 12220 +12320 +12420
11000 + 12100 + 12200 + 12300 + 12400 = 19010 + 19020	19020 = 30260+30215+30115+30521+30170	19000 =
21020 = 30000	21000 = 21010 + 21020
22120 = 31010	22100 = 22110 + 22120
22210 = 20240 + 20340	22200 = 22210 + 22220
22220 = 30815	22300 = 22310 + 22320
22320 = 30910	22400 = 22410 + 22420
22420 = 30950	29010 = 21010 +22110 +22210 +22310 + 22410
29010 = 20340+20240+21225	29020 = 21020 + 22120 + 22220 + 22320 + 22420
21000 + 22100 + 22200 + 22300 + 22400 = 29010+29020	29020 = 30000+31010+30815+30910+30950	29999 =

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Item Definition
Amounts in Thousands of L.L.
Residents | Non-Residents | Residents | Non-Residents | Total | Number | Accounts in L.L. | Equivalent in Foreign Currency

Funds Paid

• Funds paid transferred from abroad via International Transfer Networks (Electronic)
• Funds paid transferred from within Lebanon via Lebanese Local Networks
• Funds paid received under custody under contracts
  • Public Sector Institutions
  • Financial Sector Institutions
  • Private Sector Institutions
  • Companies
  • Individuals
  • Others

Funds Collected

• Funds collected for transfer abroad via International Transfer Networks (Electronic)
• Funds collected for transfer within Lebanon via Lebanese Local Networks
• Funds collected for repayment under contracts
  • Public Sector Institutions
  • Financial Sector Institutions
  • Private Sector Institutions
  • Companies
  • Individuals
  • Others

Balances Held for the Principal Agent

• In Cash
• At Banks
• Central Bank of Lebanon

Movement of Electronic Money Transfer Operations Executed by Central Bank of Lebanon (Banks, Financial Institutions, Exchange Institutions) via Registered Sales Points/Networks Connected to the Authorized Principal Agent (CET-5)

Exchange Directorate - Monthly Status as of //____

Bank or Institution Number:
Name of Bank or Institution: