Regulatory Alerts2018-06-26 | 12837Fighting Money Laundering and Terrorist Financing
Bank of Lebanon’s Governor issued Basic Decision No. 12837, mandating all financial intermediation institutions and collective investment bodies in Lebanon to implement a comprehensive risk-based framework for combating money laundering and terrorist financing. The decision requires these entities to establish robust Know Your Customer (KYC) procedures, accurately identify beneficial owners across legal persons and trusts, maintain detailed transaction records for five years, and apply enhanced due diligence to high-risk clients and politically exposed persons. Furthermore, it obligates institutions to maintain effective internal compliance systems, enforce strict correspondent banking standards against shell banks, and continuously monitor the national terrorism list to freeze designated assets within 48 hours of notification.