Central Bank of Lebanon Decision No. 13183 Amending Decision No. 7548 on Electronic Banking and Financial Operations

Circular No. 539

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

We enclose a copy of Central Bank Decision No. 13183 dated 17/1/2020, 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, January 17, 2020

Governor of the Central Bank of Lebanon

Riad T. Salam

Central Bank Decision No. 13183

Amending 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 Articles 70 and 174 thereof,

Pursuant to Law No. 133 dated 26/10/1999 concerning the tasks of the Central Bank of Lebanon,

Pursuant to Law No. 81 dated 10/10/2018 concerning Electronic Transactions and Personal Data, particularly Article 64 thereof,

Pursuant to Basic Decision No. 7548 dated 30/3/2000 and its amendments concerning Financial and Banking Operations via Electronic Means,

Pursuant to the powers vested in the Governor to ensure the continuous operation of the Central Bank as a public service,

Decides as follows:

Article One: The text of "Article 3" of Basic Decision No. 7548 dated 30/3/2000 is repealed and replaced with the following text:

"Or: It is prohibited to conduct banking or financial operations via mobile and fixed electronic devices between customers of different banks receiving transfer requests from the client, provided that:

1. They are executed simultaneously via the Application or electronic program used on the client's device.
2. The back-office departments of the concerned bank verify that the transfer requests comply with applicable laws and regulations.
3. They are executed exclusively via traditional methods (i.e., via the SWIFT network approved between banks).

As an exception to the provisions of the 'Or second' paragraph of this Article, conducting banking or financial operations via mobile or fixed electronic devices through applications (Applications) or electronic programs is permitted, provided that the client uses cards and/or bank accounts belonging to customers of different banks, provided that:

1. Prior approval from the Central Bank of Lebanon is obtained for any of these applications or electronic programs to be used for the aforementioned operations, in accordance with the procedure and technical conditions stipulated in the 'second' paragraph of this Article for executing these operations.

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2. These operations are executed between customers in real-time.
3. All these operations are settled between the banks' accounts at the Central Bank of Lebanon.
4. The total amount of funds sent by each client does not exceed:
   a) An amount of 500,000 LBP daily and 5,000,000,000 LBP monthly for operations conducted in Lebanese Lira. b) An amount of 300 USD daily and 30,000 USD monthly for operations conducted in US Dollars or any other foreign currencies equivalent to them.
5. The total amount of funds received by each client does not exceed:
   a) An amount of 10,000,000 LBP daily and 1,000,000,000 LBP monthly for operations conducted in Lebanese Lira. b) An amount of 600 USD daily and 60,000 USD monthly for operations conducted in US Dollars or any other foreign currencies equivalent to them.

The Central Bank of Lebanon may exceptionally approve a higher cap on the total amounts received from a client if the client is a recipient of funds as a merchant or a professional.
6. The commission charged for these operations does not exceed 0.5% (half a percent) of the value of each operation.
7. All laws and regulations related to compliance and anti-money laundering are observed in these operations.
8. The Payment Systems Directorate at the Central Bank of Lebanon must be provided monthly with these operations and their values according to Form 0-IP attached to this Decision."

Article Two: This Decision shall take effect upon its issuance.

Article Three: This Decision shall be published in the Official Gazette.

Beirut, January 17, 2020

Governor of the Central Bank of Lebanon

Riad T. Salam

Form No. 0-IP

Bank / Institution Name _________________________________________

Number of individuals using the service _______________________________________ Number of merchants or professionals using the service __________________________ Currency: LBP Currency: USD Date: _________________________________ Signature: ____________________

To be sent to the following addresses:
-mbounassar@bdl.gov.lb
-MElhassanieh@bdl.gov.lb

Month / Volume of Transactions Value of Transactions Person to Person Person to Merchants or Professionals Total

Month / Volume of Transactions Value of Transactions Person to Person Person to Merchants or Professionals Total