Circular No. 592 to Banks

We hereby transmit, in connection with Intermediary Decision No. 13352 dated 5/8/2021 concerning the amendment of Basic Decision No. 13335 dated 8/6/2021 (Exceptional measures for the gradual repayment of foreign currency deposits) attached to Basic Circular No. 158.

Beirut, on 5 August 2021

Governor of Banque du Liban

Riad T. Salam

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Intermediary Decision No. 13352

Amending Basic Decision No. 13335 dated 8/6/2021

The Governor of Banque du Liban, pursuant to the Monetary and Loan Law, particularly Articles 174 and 70 thereof, and clarifying the provisions of Basic Decision No. 13335 dated 8/6/2021 concerning exceptional measures for the gradual repayment of foreign currency deposits, following interpretations submitted by banks regarding the detailed implementation of its provisions, and pursuant to the decision of the Central Council of Banque du Liban taken in its meeting held on 3/8/2021, hereby decides as follows:

Article 1

The text of Article 1 of Basic Decision No. 13335 dated 8/6/2021 is repealed and replaced with the following:

«Each bank operating in Lebanon shall take the necessary steps to ensure the gradual repayment of foreign currency deposits held in accounts opened before 31/10/2019, in accordance with the conditions and procedures specified below.»

Article 2

The text of paragraph "First" of Article 2 of Basic Decision No. 13335 dated 8/6/2021 is repealed and replaced with the following:

«First/ In order for any natural person account holder, resident or non-resident (hereinafter "Account Holder") to benefit from the provisions of this Decision, the total of all their credit balances in foreign currency accounts, including any related accounts they participate in or are a party to (such as joint accounts or partnerships...), opened before 31/10/2019 at any bank individually shall be considered, subject to the following:

• A. These balances shall be calculated as frozen on 30/6/2021, provided that the amount remains available and does not exceed the balance available on 31/10/2019.
• B. The following shall be deducted:
  • The balance of foreign currency accounts frozen as cash collateral (cash margin) against loans and banking facilities, as well as contingent liabilities.
  • Balances in "New Transfers" accounts as defined in Basic Decision No. 13217 dated 9/4/2020 (Banque du Liban Basic Circular No. 150).
  • Amounts transferred from Lebanese Lira to foreign currency after 31/10/2019.
• C. The following shall be deducted therefrom, exclusively:
  • The value of foreign currency cash withdrawals (Banknotes) and transfers abroad, including for medical purposes, and local transfers executed through foreign correspondents, and amounts used abroad via bank cards, after 31/10/2019, excluding "New Transfers" as defined in Basic Decision No. 13217 dated 9/4/2020 (Banque du Liban Basic Circular No. 150).
  • The value of the Account Holder's foreign currency liability portion at the relevant bank that will be settled in Lebanese Lira, pursuant to paragraph "Fifth" referenced in Article 3 of Basic Decision No. 7776 dated 21/2/2001 (Basic Circular No. 81 amended by Intermediary Circular No. 568), until 30/6/2022 or until the full settlement date of these liability accounts, whichever is earlier.»

Article 3

The following paragraph is added to paragraph "Third" of Article 2 of Basic Decision No. 13335 dated 8/6/2021:

«Employees or retirees receiving their salaries/pensions in US Dollars may benefit from the provisions of Basic Decision No. 13221 dated 21/4/2020 to withdraw their salaries/pensions only, without this depriving them of the right to benefit from the provisions of this Decision.»

Article 4

The text of paragraph "Third" of Article 3 of Basic Decision No. 13335 dated 8/6/2021 is repealed and replaced with the following:

«An amount equivalent to $50,000 of the available funds in USD or other foreign currency in the "Account Holder's" accounts at the relevant bank shall be transferred to this account. The "Account Holder" may request the transfer of $10,000 to the "Special Sub-Account" to benefit from the provisions of this Decision for one year, and upon the expiration of this year, and in accordance with paragraph "Second" of this Article, they retain the right to request the transfer of additional amounts to the aforementioned account up to the maximum limit mentioned above, in order to continue benefiting from the provisions of this Decision until the end of its application period.»

Article 5

The following text is added to paragraph "Fourth" of Article 3 of Basic Decision No. 13335 dated 8/6/2021:

«Joint account holders shall agree among themselves on the percentage of benefit each shall receive from the provisions of this Decision. If one party to a joint account decides not to benefit, the remaining party/parties in the account may benefit from the maximum allowed limit. In the event that a joint account holder has an individual special account and decides to benefit from the individual account, their partner may benefit from the joint account.»

Article 6

The phrase « pursuant to Form (PP-01-BDR-BDL) (attached) » is added to the end of paragraph "Sixth" of Article 3 of Basic Decision No. 13335 dated 8/6/2021.

Article 7

The following two paragraphs are added to Article 3 of Basic Decision No. 13335 dated 8/6/2021:

«Seventh: Banks are prohibited from imposing any obligations, conditions, commitments, or procedures not stipulated in this Decision in contracts signed with customers wishing to benefit from its provisions, or in any declaration, commitment, or document signed by these customers.»

«Eighth: The "Account Holder" or their authorized representative shall be granted a deadline until 30/9/2021 to request the opening of the "Special Sub-Account", provided that they begin benefiting from the provisions of this Decision at the beginning of the month following the account opening date if they had benefited from the provisions of Basic Decision No. 13221 dated 21/4/2020 (Basic Circular No. 151) during the month in which the "Special Sub-Account" was opened. Otherwise, if they did not benefit from the provisions of the aforementioned decision after 30/6/2021, the bank shall grant them the right to benefit from the provisions of this Decision starting from 1/7/2021.»

Article 8

The text of paragraph (2) of paragraph "First" of Article 4 of Basic Decision No. 13335 dated 8/6/2021 is repealed and replaced with the following:

2- «In addition to an amount equivalent to $400, at the specified rate, in Lebanese Lira, monthly $12,000 in Lebanese Lira for the "Account Holder" in cash (Banknotes) and 50% for the US Dollar one, of which 50% is paid via bank cards. Provided that the total amount that can be withdrawn from all banks does not exceed $4,800 annually at the specified rate, equivalent to an amount of 2 in Lebanese Lira per paragraph (above).»

Article 9

The following text is added to paragraph (3) of paragraph "First" of Article 4 of Basic Decision No. 13335 dated 8/6/2021:

3- «In the event that two or more persons benefit from joint accounts or partnerships under the provisions of this Decision, the amounts specified in paragraphs (1) and (2) of this paragraph shall be paid on a prorata basis, i.e., according to the percentage allocated to each person from the amounts transferred to the "Special Sub-Accounts" from these joint accounts or partnerships.»

Article 10

The text of Article 10 of Basic Decision No. 13335 dated 8/6/2021 is repealed and replaced with the following:

«The unit responsible for implementing the "Policy on Principles of Conducting Banking and Financial Transactions with Customers" established by Basic Decision No. 11947 dated 12/2/2015 (Basic Circular No. 134) shall receive any review or complaint submitted by any "Account Holder" concerning the implementation of this Decision, and shall study, process, adjudicate it, and notify the "Account Holder" of the decision taken. The unit referred to in this Article shall periodically report to the Banking Control Commission regarding complaints submitted in this regard.»

Article 11

This Decision shall take effect immediately upon its issuance, and any text or clarification contrary to the provisions of Basic Decision No. 13335 dated 8/6/2021 and its amendments is repealed.

Article 12

This Decision shall be published in the Official Gazette.

Beirut, on 5 August 2021

Governor of Banque du Liban

Riad T. Salam

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Banque du Liban

Central Registry of Special Sub-Accounts

(Basic Circular No. 158)

BDL-BDR-01-PP
Bank Secrecy Revelation Proxy Form for the Special Deposit Sub-Account Special Sub-Account Registry

Name Bank: _________________________________________________________________________________ Name Branch: _______________________________________________________________________________ Date: ___________ No.__________ /_______/ ______ Reference Internal Number: _________________________________________________________________ BDR at Unique Client Number: _______________________________________________________________

Client details
Surname: _____________________________ Sex: Male / Female Name: ____________________________________________________________________________________ Father's name: _____________________________________________________________________________ Mother's name: _____________________________________________________________________________ Date of Birth: ______________________________________________________________________________ Nationality: _______________________________________________________________________________ Register No. - Place: ___________________ Place: ___________________ .No - Register

I, the undersigned,
In accordance with BDL basic circular No. 158 dated 8/6/2021, I hereby waive the banking secrecy on my “Special sub-account” held at the aforesaid bank solely in favor of the Banque du Liban and the Banking Control Commission.

___________________________________________ ______________________________________________ Bank stamp and signature (Client Signature)

(The director of the bank is held personally responsible for the authenticity of the client's signature)