Academic, Professional and Ethical Qualifications

735 Text / Section 1 / Circular No. 103 dated 31/12/2017 Basic Circular for Banks No. 103 Also addressed to financial institutions and persons subject to Articles 183 and 184 of the Monetary and Credit Law «Lending Accounts» We enclose herewith a copy of Basic Decision No. 9286 dated 9/3/2006 concerning Academic, Professional and Ethical Qualifications. Beirut, 9 March 2006 Governor of Banque du Liban Riad Tawfiq Salamah

1. Also to «Lending Accounts» pursuant to Interim Decision No. 12631 dated 10/8/2017 (Interim Circular No. 470).
2. This title was amended pursuant to Article One of Interim Decision No. 12631 dated 10/8/2017 (Interim Circular No. 470).

736 Basic Decision No. 9286

1. Academic, Professional and Ethical Qualifications The Governor of Banque du Liban, Based on the Monetary and Credit Law, particularly Articles 70, 127, 174 and 179 thereof; Based on Law No. 234 dated 10/6/2000 concerning the regulation of financial brokerage, particularly Article 10 thereof; Based on Law No. 520 dated 6/6/1996 concerning the development of the financial market and credit contracts, particularly Article 1 thereof; Based on the decision of the Central Council of Banque du Liban taken in its session held on 8/3/2006, Decrees as follows:

Article One: Definitions: The following terms shall bear the meanings set forth opposite each of them:

1. "Institution": any bank, financial institution or person subject to the provisions of Articles 183 and 184 of the Monetary and Credit Law «Lending Account». "Regulated Tasks": tasks that Banque du Liban deems require certain qualifications for those performing them within the "Institution". "Tasks with Influence": "Regulated Tasks" that grant the person entrusted with them significant influence over the management of the "Institution".
2. "Appointed Person": the person who performs one of the "Regulated Tasks" and holds the imposed qualifications to do so. "Supervised Person": any person who does not hold the qualifications imposed on the "Appointed Person" and performs one of the "Regulated Tasks".

737 Article Two: Objective of this Decision is to determine the frameworks and academic, technical and ethical qualifications required for persons entrusted with performing certain tasks in the banking and financial sectors in Lebanon, aiming to preserve the stability of the said sectors and ensure protection for their clients.

Article Three: The "Institution" operating in Lebanon is prohibited from appointing any person, regardless of their status or legal position (employee, contractor, etc.), to one of the "Regulated Tasks" listed in the "List of Regulated Tasks" attached to this Decision, unless they possess the qualifications and conditions set forth in Articles Four, Five, Six and Seven below.

Article Four: The "Institution" must maintain a file for each "Appointed Person" performing one of the tasks mentioned in the "List of Regulated Tasks", such that the Banking Supervision Committee can review it at any time. The said file must include: 1 - Personal information according to the model of the "Regulated Tasks Form" attached to this Decision, provided upon appointing the concerned person to "Regulated Tasks", upon any change in the tasks performed by the "Appointed Person", and upon cessation of these tasks. 2 - A certificate or statement confirming their successful completion of the required exam according to the category exam schedule provided in the "List of Regulated Tasks".

738 Article Five: First, the following are exempt from submitting the aforementioned exam, across all its categories: 1 - The Board Chair and General Manager appointed in accordance with the rules. 2 - Persons who possess practical experience in either of the banking or financial sectors of no less than twenty years without interruption until 16/8/2016, provided that the Appointed Person has spent the last eight years of such experience in the same tasks. 3 - Branch Managers appointed before 18/09/2009 who possess at least seven years of experience in the financial and banking sectors, acquired during the nine years preceding 18/09/2009. 4 - Persons holding certificates and exams accepted by Banque du Liban as specified in the notes provided in the attached "List of Regulated Tasks". The status of persons holding certificates other than those listed may be considered upon request by banks and financial institutions and the proposal of a committee specifically appointed for this purpose by Banque du Liban. Second, to determine the experience years specified in items (2) and (3) of this Article's "First" paragraph, actual working periods are calculated by deducting any interruption exceeding sixty consecutive days.

Article Six: The result of the aforementioned exam cannot be relied upon after the "Appointed Person" has been absent from work in either of the banking or financial sectors for more than three years. In this case, a complete file must be reconstituted regarding them according to Article Four of this Decision, including proof of their renewed success in the required exam.

739 Article Seven: Exceptionally, any "Institution" unable after 15/9/2009 to appoint managers or branch heads possessing the imposed qualifications and conditions for performing "Tasks with Influence" may refer the matter to the Governor for submission to the Central Council of Banque du Liban.

Article Eight: (Amended) Article Nine: Each "Institution" must take necessary steps to ensure that any person subject to the conditions of this Decision obtains the required qualifications and conditions for performing "Regulated Tasks" within the deadlines specified in the attached "Deadline Schedule". The "Institution" must annually subject employees to required exams at a rate of no less than 20% per certificate. A person holding one of the "Regulated Tasks" is granted a maximum grace period of three years from the date of performing such task to obtain the required qualifications and conditions.

Article Ten: (Amended) Article Eleven: The "Institution" must keep copies of all documents and statements related to the "Appointed Person" for no less than five years from the date of their departure.

Article Twelve: (Amended) Article Thirteen: The "Institution" is requested to contact the Legal Affairs Department to obtain necessary information and clarifications when appropriate.

740 Article Fourteen: Any person violating the provisions of this Decision is subject to the administrative penalties stipulated in the applicable laws and regulations.

Article Fifteen: The Banking Supervision Committee ensures the "Institution's" compliance with the provisions of this Decision.

Article Sixteen: This Decision takes effect upon its issuance.

Article Seventeen: This Decision is published in the Official Gazette. Beirut, 9 March 2006 Governor of Banque du Liban Riad Tawfiq Salamah

741 Deadlines for Compliance with Required Certificates First: The deadline for obtaining any of the required certificates by employees covered by this Circular prior to the amendment dated 23/9/2013. Deadline | Certificates 31/12/2018 | Risk in Financial Services, CAMS, Lebanese Financial Regulations

Second: The deadline for obtaining any of the required certificates designated for Regulated Tasks, added on 16/8/2016 and 10/8/2017 to the "List of Regulated Tasks". Deadline | Certificates Until June 2022 | Banking Ethics, Bank Credit, Combating Financial Crime, Professional Banker, Lebanese Financial Regulations, Certified Internal Auditor (CIA)

742 List of Regulated Tasks Category | Tasks Lebanese Financial Regulations | 5 & 8 Risk in Financial Services | 7 CAMS | 3 & 11 Bank Credit | 12 Combating Financial Crime | 3 & 11 Professional Banker Certificate (PBC) | 4 & 5 Banking Ethics | 6 Certified Internal Auditor (CIA) |

Any administrative officer or department head, or any person associated with the following tasks:

1. Treasury (x) - Branch Manager or Head, and their deputies, branch managers, regional manager
2. Treasury (x) - Back Office & Correspondent Banking
3. Risk Management (x)
4. Accounting
5. Finance & Supervision (x) - Trading, Deposits & Accounting, Back Office for executing all banking operations: Asset Management, Private Banking (payments, reconciliations), Support & Execution
6. Credit (x) - Analysis, study, marketing, and credit review (Retail, SME, Corporate)
7. Retail Services (x) - Creation, marketing, analysis, study and follow-up
8. Internal Audit & Supervision (x)
9. Compliance (Legal & AML/CFT) (x)
10. Human Resources, Individuals: training, development and recruitment (x)
11. Tellers/Head Tellers

Notes: 1 - Holders of either CAMS or Combating Financial Crime certificate are exempt from the other. 2 - Holders of I Level FRM or I Level CFA are exempt from the Risk in Financial Services exam. 3 - Holders of ICA certificate are exempt from the following two certificates: CAMS and Combating Financial Crime. 4 - Employees working in the Credit/Trade Finance department only are subject to Lebanese Financial Regulations and Banking Ethics exams. Employees working in collections and credit departments are exempt from the Bank Credit exam. 5 - Equivalence is accepted between Lebanese Financial Regulations and Professional Banker Certificate (PBC). 6 - Only employees holding the Conduct of Business certificate (covered by the Financial Markets Authority Circular) are exempt from Banking Ethics. 7 - The Higher Institute of Business (ESA), in addition to the Banking Studies Institute affiliated with the Banks Association, delivers courses on Lebanese Financial Regulations and Systems, provided that exams are conducted at ESA. 8 - The Higher Institute of Business (ESA) is responsible for delivering courses on Lebanese Financial Regulations and Systems, in addition to the Banking Studies Institute affiliated with the Banks Association. 9 - Internal Audit and Supervision category excludes those performing only IT Audit (Audit IT). 10 - Employees holding twenty years of experience who spent the last eight years in the same tasks in both sectors without interruption until 16/8/2016 are exempt from all exams. 11 - Holders of either CAMS or Combating Financial Crime certificate are exempt from the other.

743 Regulated Tasks Form I- Personal Information Candidate's Name: Institution Name: Second Name: Form Number (Employment No.): Mother's Name and First Name: Date of Commencement of Employment in Institution: Spouse's Name and First Name: Nature of Employee's Work: Contracted □ Employee □ Other □ Nationality: Current Position in Institution: Place and Date of Birth: Category of Regulated Tasks: ID Number and Place - Judiciary: Health Insurance: Candidate's Address: Date of Authorization "as a Supervised Person": Governorate: Building: Date of Authorization "as an Appointed Person": City: Phone: Residence at this address from .../.../.... to .../.../....

II- Details of Service Years before Starting in Current Institution Nature of Work: Nature of Institution's Business: Address (Country/City/Street): Reason for Leaving Work: Date of Cessation | Date of Commencement | Position | Health Insurance | Employee / Freelancer / Other Resignation □ Retirement □ Contract Expiry □ Surplus Staff □ Termination or Dismissal □ Other .......................

745 III- Internal Transfer of the Appointed Person (To be filled when transferring from one position to another) Category of Regulated Tasks ceased by the Appointed Person: Date of Cessation from Performing Regulated Tasks: Category of Regulated Tasks to be performed by the Candidate: Date of Authorization "as a Supervised Person": Date of Authorization "as an Appointed Person":

IV- Cessation from Performing Regulated Tasks (To be filled when ceasing to perform regulated tasks) Category of Regulated Tasks ceased by the Appointed Person: Date of Cessation from Performing Regulated Tasks: Reason for Cessation from Performing Regulated Tasks: Internal Staff Discussion □ Resignation □ Retirement □ Contract Expiry □ Surplus Staff □

Declaration: I, the undersigned, declare: I- That intentionally or negligently providing false or misleading information may entail legal responsibilities. II- That Banque du Liban considers publicly available, circulated or previously disclosed information as valid. III- That Banque du Liban has the right to conduct investigations and seek additional information as deemed appropriate, within the framework of its audit of the information provided in this form. It may also disclose the audit results to the institution. I confirm that the information recorded in this form is accurate, complete and to the best of my knowledge, and that I have read the notes regarding the preparation of this form. IV- When multiple institutions belong to a single group, the primary institution fills out this form on their behalf. Candidate's Signature: Responsible's Signature: Date: Institution Stamp: