RegAlert2023-02-06 | 13532Added · Updated
Exceptional Restrictions Relating to Some Banking Operations
The Central Bank of Lebanon issued Intermediary Decision No. 13532 to amend Basic Decision No. 13353, expanding exceptional restrictions on banking operations during the country's extraordinary economic circumstances. The decision modifies existing provisions to permit banks to directly or indirectly buy and sell checks and bank accounts in foreign currencies or Lebanese Lira, while introducing a new provision allowing the issuance of bank checks in another bank's name unless specifically endorsed to a beneficiary. Furthermore, it mandates that banks assume full responsibility for ensuring Lebanese Lira bank and certified checks are issued for legitimate purposes, such as tax or judicial fee payments, to prevent domestic currency speculation.
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Intermediary Circular No. 662
To Banks and Supervisory Delegates
We hereby submit to you Intermediary Decision No. 13532 dated 6 February 2023 regarding the amendment of the Basic Decision. A copy of Intermediary Circular No. 13353 dated 17 August 2021 regarding exceptional restrictions on certain operations performed by banks, attached to Basic Circular No. 159.
Beirut, 6 February 2023
Governor of the Central Bank of Lebanon
Riad T. Salamé
Intermediary Decision No. 13532
Amendment of Basic Decision No. 13353 dated 17 August 2021
The Governor of the Central Bank of Lebanon,
Pursuant to the Monetary and Banking Law, particularly Articles 70 and 174 thereof; Pursuant to Basic Decision No. 13353 dated 17 August 2021 and its amendments regarding exceptional restrictions on certain operations performed by banks; Given the extraordinary circumstances currently experienced by the country; and Pursuant to the decision of the Central Bank Council taken in its meeting held on 1 February 2023,
Has decided as follows:
Article One: The text of paragraph (2) of Article Two of Basic Decision No. 13353 dated 17 August 2021 is amended and replaced with the following:
"2 – Buying and selling checks and bank accounts in foreign currencies or in Lebanese Lira on their own account, directly or indirectly."
Article Two: Paragraph (4) is added to Article Two of Basic Decision No. 13353 dated 17 August 2021, with the following text:
"4 – Issuing bank checks in foreign currencies or in Lebanese Lira in the name of another bank, unless the check includes the beneficiary's name requiring that the value of the check be deposited into his account."
Article Three: "Article Two (bis)" is added to Basic Decision No. 13353 dated 17 August 2021, with the following text:
"Article Two (bis): When issuing bank checks and certified checks in Lebanese Lira, banks must ensure, under their own responsibility, that the purpose of requesting the issuance of these checks is legitimate (payment of taxes, fees, and judicial insurance...) and does not lead to speculation on the national currency."
Article Four: This decision shall take effect upon its issuance.
Article Five: This decision shall be published in the Official Gazette.
Beirut, 6 February 2023
Governor of the Central Bank of Lebanon
Riad T. Salamé
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Lineage: In force
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This document amends: Exceptional Restrictions on Some Operations Performed by Banks
Source: Banque du Liban — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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