Regulatory Alerts2018-12-24 | 12948Central Bank of Lebanon Circular No. 51 on the Amendment of the System for Monitoring Financial and Banking Operations to Combat Money Laundering and Terrorist Financing
The Central Bank of Lebanon issued Circular No. 51 to implement Central Bank Council Decision No. 12948, which amends the regulatory framework for combating money laundering and terrorist financing. The amendment introduces a new reporting requirement under Article 8, mandating the monitoring of cash deposits resulting from real estate sales that are subsequently withdrawn or transferred to the buyer or a designated third party under the pretext of canceling the sale. This measure aims to prevent the layering of illicit funds through fictitious property transactions and takes effect immediately upon issuance.
Circular No. 51
For Banks and Financial Institutions
We enclose herewith a copy of Interim Decision No. 12948 dated 24/12/2018 regarding the amendment of the system for monitoring financial and banking operations to combat money laundering and terrorist financing, attached to the Fundamental Decision No. 7818 dated 18/5/2001, which is the subject of this Fundamental Circular No. 83.
Beirut, on 24 December 2018
Governor of the Central Bank of Lebanon
Riad T. Salam
Interim Decision No. 12948
Amendment of the "System for Monitoring Financial and Banking Operations to Combat Money Laundering and Terrorist Financing"
The Governor of the Central Bank of Lebanon,
Pursuant to the provisions of Law No. 44 dated 24/11/2015 on Combating Money Laundering and Terrorist Financing,
Specifically Article 4 thereof,
Pursuant to Fundamental Decision No. 7818 dated 18/5/2001 and its amendments regarding the system for monitoring financial and banking operations to combat money laundering and terrorist financing,
Pursuant to the decision taken by the Central Council of the Central Bank of Lebanon in its meeting held on 19/12/2018,
Decides as follows:
Article 1: The following paragraph (17) is added to point (a) of Article 8 of the "System for Monitoring Financial and Banking Operations to Combat Money Laundering and Terrorist Financing" attached to Fundamental Decision No. 7818 dated 18/5/2001, with the following text:
"17- The receipt of a cash deposit resulting from a real estate sale transaction, followed by the withdrawal of the amount or its transfer to the buyer or to any person designated by the latter, under the pretext of canceling the sale transaction."
Article 2: This Decision shall take effect immediately upon its issuance.
Article 3: This Decision shall be published in the Official Gazette.
Beirut, on 24 December 2018
Governor of the Central Bank of Lebanon
Riad T. Salam