Regulatory Alerts2022-02-21 | 13410Central Bank of Lebanon Circular Decision No. 13410 on Electronic Banking and Financial Operations
The Central Bank of Lebanon issued Circular Decision No. 13410 to amend Decision No. 7548 regarding electronic financial and banking operations, specifically reallocating five hundred million Lebanese Lira from the capital of service points operating within or via contracted branches and secondary agents. The decision introduces a new Article 5 bis, granting non-bank electronic cash transfer institutions the right to obtain foreign exchange licenses for purchasing and selling inbound foreign currency, provided their annual external transaction volume remains at least 50 billion LBP. Non-compliant institutions are granted a compliance deadline of June 30, 2022, to regularize their operational status under the amended regulatory framework.
Circular No. 614
For banks, financial institutions, and institutions engaged in electronic banking and financial operations
We enclose Circular No. 13410 dated 21/2/2022 regarding the amendment of Decision No. 7548 dated 30/3/2000 (Electronic Financial and Banking Operations) attached to Circular No. 69.
Beirut, 21 February 2022
Governor of the Central Bank of Lebanon
Riad T. Salam
Circular Decision No. 13410 Amending Decision No. 7548 dated 30/3/2000 Regarding Electronic Financial and Banking Operations
The Governor of the Central Bank of Lebanon, Based on Articles 70 and 174 of the Monetary and Banking Law, Based on Law No. 133 dated 26/10/1999 regarding the duties of the Central Bank, Based on Decision No. 7548 dated 30/3/2000 and its amendments regarding electronic financial and banking operations, And considering the necessity of maintaining electronic money transfer companies, Based on the decision taken by the Central Council at its meeting held on 16/2/2022,
Decides as follows:
Article 1: The text of point (13) of Article 5 of Decision No. 7548 dated 30/3/2000 is repealed and replaced with the following: « 13- An amount of five hundred million Lebanese Lira is allocated from their capital for each service point/location operating within branches or via secondary agents or through any branch/secondary agent contracted with them. »
Article 2: "Article 5 bis" is added to Decision No. 7548 dated 30/3/2000 with the following text: « Article 5 bis: Non-bank institutions performing electronic cash transfer operations may apply, directly or indirectly, to obtain a license from the Central Bank of Lebanon to conduct foreign exchange operations for the purpose of purchasing foreign currency transferred from abroad for their customers wishing to convert it, with the sole condition that their annual volume of external operations does not fall below 50 billion LBP, during the year preceding the date of their application to the Central Bank. »
Article 3: Non-bank institutions performing electronic cash transfer operations and which are in non-compliance with the provisions of Article 1 of this decision are granted a maximum deadline of 30/6/2022 to regularize their status.
Article 4: This decision takes effect upon its issuance.
Article 5: This decision is published in the Official Gazette.
Beirut, 21 February 2022
Governor of the Central Bank of Lebanon
Riad T. Salam