Basic Circular No. 166

Exceptional Measures for the Repayment of Deposits Constituted Before June 30, 2023 in Foreign Currencies

Beirut, February 2, 2024
Acting Governor of Banque du Liban
Dr. Wissam Mansouri

Amendment Note: This title was amended by Article 1 of Intermediate Decision No. 13645 dated June 27, 2024 (Intermediate Circular No. 698), and its Article 7 states: "This decision takes effect from July 1, 2024, such that the conditions of Basic Decision No. 13611 dated February 2, 2024, as amended by this decision, apply for one year, amendable or renewable, and remain valid until all funds transferable to the 'Special Sub-Account' are released."

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Basic Decision No. 13611
Exceptional Measures for the Repayment of Deposits Constituted Before June 30, 2023 in Foreign Currencies

The Acting Governor of Banque du Liban, based on the Monetary and Banking Law, specifically Articles 70 and 174 thereof, after consulting the Lebanese Bankers Association, and based on a decision of the Central Bank Council taken in its meeting held on February 2, 2024,

hereby decides as follows:

Article 1:

Without prejudice to depositors' right to recover their deposits, each bank operating in Lebanon shall exceptionally take the necessary steps to ensure the gradual repayment of foreign currency deposits not classified as "Cash Funds" and constituted before June 30, 2023, which do not benefit from the provisions of Basic Decision No. 13335 dated June 8, 2021 (Basic Circular No. 158), according to the conditions and mechanism specified below.

Amendment Note: This article was amended by Article 2 of Intermediate Decision No. 13645 dated June 27, 2024 (Intermediate Circular No. 698), and its Article 7 states: "This decision takes effect from July 1, 2024, such that the conditions of Basic Decision No. 13611 dated February 2, 2024, as amended by this decision, apply for one year, amendable or renewable, and remain valid until all funds transferable to the 'Special Sub-Account' are released."

Article 2:

First: To benefit from this decision, any natural person account holder, adult or minor, resident or non-resident (hereinafter "Account Holder"), shall rely on the total balance of all their foreign currency accounts, excluding "Cash Funds", including related accounts in which they participate or benefit (such as joint or united accounts) at any bank individually, calculated as frozen on June 30, 2023.

Exception to the above: Individual institutions and licensed associations benefit from this decision.

Second: The "Account Holder" benefits regarding:

1. Time deposits upon maturity.
2. Cash collateral provided, upon release.
3. Accounts considered a continuation of those opened at the same bank before June 30, 2023 (including joint accounts converted to individual, individual to joint, accounts transferred to heirs or legatees, frozen accounts converted to current...). For this point, only the primary Account Holder from whom funds were transferred benefits. In case of death, heirs or legatees benefit up to the limits in Article 5.

Third: The following do not benefit:

1. Persons specified in Article 2 of Basic Decision No. 13262 dated August 27, 2020 (Basic Circular No. 154) who failed to repatriate the required ratio, without affecting the bank's obligation to urge clients to repatriate funds transferred abroad.
2. Persons whose accounts show bank check movements indicating check trading after October 31, 2019.
3. Persons who settled foreign currency loans in Lebanese Lira after October 31, 2019, equivalent to or exceeding $300,000.
4. Persons who converted foreign currency loans to Lira after October 31, 2019, equivalent to or exceeding $300,000.
5. Persons who purchased the equivalent of or more than $75 on the Sayrafa electronic exchange platform.
6. Persons benefiting simultaneously from Basic Decision No. 13335 dated June 8, 2021 (Basic Circular No. 158) at any bank.

Amendment Note: This paragraph was added by Article 1 of Intermediate Decision No. 13771 dated November 28, 2025 (Intermediate Circular No. 747), effective from December 1, 2025.

Article 3:

The client does not benefit from this decision for any of their accounts (individual, joint, or united) throughout the duration they benefit from Basic Decision No. 13335 (Basic Circular No. 158) at any bank. If one partner in a joint account benefits, the other cannot benefit from Basic Decision No. 13335 for that joint account but may benefit from it for other accounts if not simultaneously benefiting from this decision.

Amendment Note: This article was amended by Article 3 of Intermediate Decision No. 13645 dated June 27, 2024 (Intermediate Circular No. 698), and its Article 7 states: "This decision takes effect from July 1, 2024, such that the conditions of Basic Decision No. 13611 dated February 2, 2024, as amended by this decision, apply for one year, amendable or renewable, and remain valid until all funds transferable to the 'Special Sub-Account' are released."

Article 4:

First: To benefit, the "Account Holder" must request the relevant bank to open a "Special Sub Account" (SSA).

Second: The amount transferred to the SSA shall be equivalent to $9,200 or less, depending on available balances in USD or other foreign currencies, per the client's choice, allowing full freedom to determine the amount exceeding one annual cycle (Cycle Year One).

Third: If multiple accounts exist at one bank, the client specifies which account(s) transfer to the SSA. For joint/united accounts, the maximum benefit is $9,200 per account. Joint account holders agree on each's benefit ratio; if one opts out, others may utilize the maximum limit. If a joint account holder has an individual SSA and opts to benefit from it, their partner may benefit from the joint account.

Fourth: The SSA or any linked account shall not be subject to commissions or expenses of any kind, ensuring the client receives full amounts without deductions; the SSA is non-interest bearing.

Fifth: To benefit, the "Account Holder" must:

• Exclusively waive banking secrecy on the SSAs solely in favor of Banque du Liban and the Banking Control Commission, according to attached forms (PP-03-BDR-BDL for natural persons and MP-03-BDR-BDL for legal entities in Article 2, first paragraph).
• Sign a declaration (Form No. 2) confirming no excluded operations occurred at any bank, under penalty of losing benefits and returning received amounts.

Sixth: If the bank finds the declaration false, it suspends benefits, recovers amounts, and returns liquidity from BDL to cover them.

Seventh: Banks are prohibited from imposing unlisted obligations, conditions, commitments, or procedures in contracts with clients benefiting from this decision or in any declaration/undertaking/document signed by them.

Amendment Notes: This article was amended by Articles 1 & 2 of Intermediate Decision No. 13671 dated October 10, 2024 (Intermediate Circular No. 711) and Intermediate Decision No. 13681 dated November 26, 2024 (Intermediate Circular No. 718).

Article 5:

First: Withdrawals from SSAs occur as follows:

1. $500 monthly, without direct or indirect commissions/fees, with an annual aggregate cap of $6,000 across all banks, paid as:
   • $400 to the "Account Holder" in cash (banknotes) and/or via transfer abroad and/or via bank cards usable in Lebanon/abroad and/or deposited into a new (Account Fresh) account.
   • $100 via bank cards used exclusively at POS terminals, adjustable by BDL per monetary policy.
     The annual withdrawal cap across all banks during the current cycle ending June 30, 2026, is adjusted to $5,500.
2. If two or more persons benefit from joint/united accounts, payments (including POS) are made proportionally (Prorata) based on each person's share of funds transferred to SSAs from those accounts.
3. Exceptionally, two payments in October 2024 and one payment each in November 2024, December 2024, and January 2025 are made in addition to monthly payments, subject to:
   a) Applying to persons who submitted secrecy waiver before specific dates (Sep 25, 2024 for Oct payments; Nov 1, 2024 for Nov payment; Nov 26, 2024 for Dec payment; Dec 24, 2024 for Jan payment). b) c) Clients without sufficient SSA balance may request additional top-ups within the allowed cap until application ends, with remaining extra payments disbursed when available. d) Extra payments are declared to the "Central Department for Special Sub-Accounts" in the actual payment month.

Second: The "Account Holder" may withdraw specified amounts fully or partially at any time; unwithdrawn monthly amounts accumulate to subsequent months and remain in their "Cash Funds" (Account Fresh) subject to exemptions/obligations of Basic Decision No. 13217 dated April 9, 2020 (Basic Circular No. 150).

Third: The "Account Holder" may fully or partially withdraw the value deposited in the SSA via checks or transfers to another account within Lebanon at the same bank or another.

Fourth: The "Account Holder" benefits retroactively from the request/secrecy waiver submission date to SSA opening, with full amounts paid on the first payment date.

Amendment Notes: This article was amended by Articles 3 & 4 of Intermediate Decision No. 13771 dated November 28, 2025 (Intermediate Circular No. 747), effective from December 1, 2025.

Article 6:

First: The Centralized SSA, established under Basic Decision No. 13335 (Basic Circular No. 158) at BDL's Banks Directorate (hereinafter "The Center"), oversees:

• Monitoring implementation;
• Providing monthly reports to the Governor.

Second: Banks must provide The Center monthly with balances of opened SSAs and amounts withdrawn during the month.

Third: The Center verifies compliance, especially regarding withdrawal cap breaches, and notifies the Governor to suspend benefits if necessary.

Fourth: Suspension occurs:

1. For the remaining "Annual Cycle" when the annual withdrawal cap is reached.
2. Throughout the breach period, if any, until the end of the current "Annual Cycle" at all banks where the client benefits, plus subsequent cycles at the breaching bank equal to the number of breach months.
3. If benefiting simultaneously from this decision and Basic Decision No. 13335 at any bank, until status is settled.

Fifth: Banks cannot withhold monthly payments to each "Account Holder" per Article 5 unless BDL requests it.

Amendment Note: This article was amended by Article 4 of Intermediate Decision No. 13701 dated February 20, 2025 (Intermediate Circular No. 728), effective from March 1, 2025.

Article 7:

Liquidity is secured as follows:

1. For the portion of monthly payments not exceeding $150, liquidity is shared equally between the relevant bank and its mandatory foreign currency investments at BDL (released by BDL for this purpose).
2. For the portion exceeding $150, liquidity is fully from mandatory foreign currency investments at BDL (released for this purpose).
   The "Central Department for Special Sub-Accounts" declares the shared portion separately from the fully funded portion.

Article 8:

Non-compliance by any bank obligates it to return foreign currency liquidity received from BDL to its account with overseas correspondents and deprives it of all or some operations with BDL, exposing it to fines under Article 208 of the Monetary and Banking Law.

Article 9:

Supervisory commissioners for relevant banks must verify correct implementation and notify the Governor and Banking Control Commission Chair of any violations.

Article 10:

This decision takes effect upon issuance and applies for a duration ending June 30, 2026, amendable or renewable.

Amendment Note: This article was extended by Article 3 of Intermediate Decision No. 13726 dated June 18, 2025 (Intermediate Circular No. 737), stating: "This decision takes effect from July 1, 2025, such that the conditions of Basic Decision No. 13611 dated February 2, 2024, as amended by this decision, apply for one year, amendable or renewable, and remain valid until all funds transferable to the 'Special Sub-Account' are released."

Article 11:

This decision is published in the Official Gazette.

Beirut, February 2, 2024
Acting Governor of Banque du Liban
Dr. Wissam Mansouri

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Appendix Forms (Translated)

Form 1: Bank Secrecy Revelation Proxy Form for the Special Deposit Sub-Account (PP-03-BDR-BDL) Bank: ________________________ Branch: ________________________ Reference No.: ______ Date: //______ Internal Reference: ______________ BDR Unique Client No.: _____________ Client Details:
Surname: ______________________ Name: ______________________________ Father's Name: ________________ Mother's Name: _________________ Date of Birth: ______________________ Nationality: ___________________ Register No.: ______ Place: __________ I, the undersigned, in accordance with BDL Basic Circular No. 166 dated February 2, 2024, hereby waive the banking secrecy on my "Special Sub-Account" held at the aforesaid bank solely in favor of Banque du Liban and the Banking Control Commission. (Client Signature) (Date) Bank Stamp & Signature (The director of the bank is held personally responsible for the authenticity of the client's signature)

Form 2: Declaration According to Basic Circular No. 166 (MP-03-BDR-BDL) I, the undersigned, declare and confirm:
That I am not among the persons specified in Article 2 (third paragraph) and Article 3 of Basic Decision No. 13611 dated February 2, 2024 (Basic Circular No. 166), namely:

1. Persons specified in Article 2 of Basic Decision No. 13262 dated August 27, 2020 (Basic Circular No. 154) who failed to repatriate the required ratio.
2. Persons whose accounts show bank check movements indicating check trading after October 31, 2019.
3. Persons who settled foreign currency loans in Lira after October 31, 2019, equivalent to or exceeding $300,000.
4. Persons who converted foreign currency loans to Lira after October 31, 2019, equivalent to or exceeding $300,000.
5. Persons who purchased the equivalent of or more than $75 on the Sayrafa platform.
6. Persons benefiting simultaneously from Basic Decision No. 13335 dated June 8, 2021 (Basic Circular No. 158) at any bank.
   And that I have not conducted any of the above operations at any banks.
   Accordingly, confirming the accuracy of this declaration, I undertake to return amounts received contrary to Basic Decision No. 13611 (Basic Circular No. 166).

Form 3: Client Information & Bank Secrecy Revelation Proxy for Legal Entities (MP-03-BDR-BDL) Client Details:
Name: ________________________ Legal Form: ______________ Foundation Date: _____________ Registration No.: ______ Place: __________ Nationality: ___________________ I, the undersigned, authorized signatory on behalf of the above-mentioned client, in accordance with BDL Basic Circular No. 166 dated February 2, 2024, hereby waive the banking secrecy on the "Special Sub-Account" of the above-mentioned client in favor of Banque du Liban and the Banking Control Commission. (Authorized Signatory Signature) (Bank Stamp & Signature) The director of the bank is held personally responsible for the authenticity of the signature.