Exceptional Measures on Foreign-Currency Transactions

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Basic Circular No. 157

To Banks

We hereby submit to you a copy of Basic Decision No. 13324 dated 10/5/2021 concerning exceptional measures regarding foreign-currency transactions.

Beirut, May 10, 2021

Governor of the Central Bank of Lebanon

Riad T. Safra

Basic Decision No. 13324

Exceptional Measures on Foreign-Currency Transactions

The Governor of the Central Bank of Lebanon, based on the Monetary and Loan Law, particularly Articles 70, 75, 83 (paragraph b), and 174 thereof, given that the current exceptional circumstances in Lebanon have significantly affected the exchange rate of foreign currency notes, and based on the decision taken by the Central Bank Council in its meeting held on April 28, 2021,

hereby decides as follows:

Article One: Banks are automatically required to participate in the electronic foreign exchange platform established by the Central Bank of Lebanon (hereinafter "the Platform"), based on an invitation sent to a specific IP address for each bank by the Foreign Currency Unit at the Central Bank of Lebanon.
When conducting the transactions referred to in Article Two below, banks must comply with the following:

1. Immediately and clearly entering all required information for each transaction and recording it via the electronic program named "Sayrafa" belonging to this "Platform."
   The required information includes: the transaction date and value, client identification and category (natural person, legal entity...), name, phone number, transaction purpose, a copy of the identity document, or a copy of commercial registration documents if it is a legal entity, and any other information that may be required to be entered into the "Sayrafa" program.

2. Obtaining a signed document from the client releasing bank secrecy regarding the transaction conducted on their behalf on "the Platform" in favor of the Central Bank of Lebanon and the Banks Supervision Commission.

Article Two: Banks may conduct cash foreign exchange transactions, as defined by Law No. 347 dated August 6, 2001, to secure their needs, according to the commercial and personal supply of their clients, as well as market demand, provided that margins between the selling price and buying price or any type of commission do not deviate from established practices and, in absolute terms as a maximum limit, do not exceed 1% of the purchase price, through:

1. Purchasing cash (banknotes) in Lebanese Lira from their clients against foreign currency, which is settled abroad or in new (Fresh) accounts in Lebanon, so that clients have the freedom to use these funds to benefit from all banking services provided by the concerned bank, including foreign transfers, cash withdrawals, and bank card services in Lebanon and abroad.
2. Purchasing foreign currency cash (banknotes) or from new (Fresh) accounts against Lebanese Lira, which is settled in cash or in the client's account.
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Article Three: Subject to applicable laws, regulatory provisions, and implementing rules, the Central Bank of Lebanon may intervene on "the Platform" when deemed appropriate and within its capabilities to ensure exchange rate stability, provided that these transactions are recorded in special accounts within the "Exchange Rate Stabilization Fund."

Article Four: Banks are required to enter daily cash balances in Lebanese Lira and foreign currency on "the Platform" daily, so that the Foreign Currency Unit at the Central Bank of Lebanon can reconcile this information.

Article Five: Banks participating in "the Platform" may download the user manual for the "Sayrafa" program to clarify or inquire about operation procedures, and may contact the phone number (9808378) to obtain further information.

Article Six: The Banks Supervision Commission is required to verify the accuracy of information related to transactions on "the Platform", monitor banks' compliance with the provisions of this decision, and follow up on any complaints from affected parties.

Article Seven: Violation of the provisions of this decision exposes the non-compliant bank to administrative penalties stipulated in applicable laws and regulations.

Article Eight: This decision takes effect immediately upon its issuance.

Article Nine: This decision is published in the Official Gazette.

Beirut, May 10, 2021

Governor of the Central Bank of Lebanon

Riad T. Safra