Regulatory Alerts2020-08-19 | 13257Transfers to Lebanese Students Abroad
The Central Bank of Lebanon issued Basic Decision No. 13257 to authorize domestic banks to process foreign currency transfers from clients' current accounts for tuition, rent, and living expenses of Lebanese students residing abroad. The regulation mandates that beneficiaries be enrolled in educational institutions before the end of 2019, requires supporting documentation or established transfer practices, and caps annual transfers at 10,000 USD (or equivalent). These provisions take immediate effect and are published in the Official Gazette to facilitate student financial obligations during exceptional economic conditions.
Basic Circular No. 153
To the Banks
We kindly enclose a copy of Basic Decision No. 13257 dated 19/8/2020 concerning transfers to Lebanese students abroad.
Beirut, 19 August 2020
Governor of the Central Bank of Lebanon
Riad T. Salam
Basic Decision No. 13257
Transfers to Lebanese Students Abroad
The Governor of the Central Bank of Lebanon, based on the Monetary and Banking Law, particularly Articles 174 and 70 thereof, given the exceptional circumstances through which the country is passing, and in order to ensure the payment of tuition fees, rent, and living expenses for Lebanese students abroad, and based on the decision of the Central Bank Council taken in its meeting held on 19/8/2020,
has decided as follows:
Article One: Without prejudice to more favorable agreements for the client, banks operating in Lebanon shall carry out money transfers abroad from their clients' current accounts denominated in foreign currency to ensure the payment of tuition fees, rent, and living expenses for Lebanese students abroad, provided that:
- The student is enrolled in an educational institution and resides abroad before the end of the year 2019.
- Documents proving the amount of tuition fees and rent are presented, or it is customary to execute transfers for these expenses.
- The tuition fee amount is transferred directly to the beneficiary entity upon maturity.
- Their annual ceiling does not exceed 10,000 USD or its equivalent in other currencies.
Article Two: This decision shall take effect upon issuance. Article Three: This decision shall be published in the Official Gazette.
Beirut, 19 August 2020
Governor of the Central Bank of Lebanon
Riad T. Salam