Regulatory Alerts2024-10-10 | 13672Opening of Bank Accounts
The Central Bank of Lebanon issued Circular No. 712 to amend Article 1 of its September 2019 circular regarding the holding and processing of customer checks within Lebanese banks. The directive mandates that banks accept and retain checks in customer accounts until the guarantee period expires, provided no legal prohibition or objection exists, and requires closed accounts to be settled with amounts equal to the included check values. Furthermore, it clarifies that these checks apply to investment deposits, savings accounts, and time deposits in Lebanon, subject to the conditions outlined in Circulars No. 158 and No. 166, with immediate effect upon publication.
Central Bank Circular No. 712 To Banks
Reference is made to Central Bank Circular No. 13672 dated October 10, 2024, concerning Circular No. 13100 dated September 3, 2019 (subject of the main circular regarding Circular No. 147). Issued on October 10, 2024. Governor of the Central Bank of Lebanon, [Signature] Wissam Mansouri
Circular No. 13672 Regarding Circular No. 13100 dated September 3, 2019 issued by the Governor of the Central Bank of Lebanon, Based on Articles 70 and 174 thereof, pursuant to the Law, And amending Circular No. 13100 dated September 3, 2019 and its amendments regarding the subject matter, And after consulting the Lebanese Banks Association, Pursuant to the resolution of the Board of Directors of the Central Bank of Lebanon dated October 9, 2024, And hereby orders the following:
Article 1: Amending Article 1 of Circular No. 13100 dated September 3, 2019 ("Article 1") as follows: its text is: For the benefit of its customers, it is: Article 1: -1 For banks that have been operating in Lebanon and subject to their liability, accepting this check from the customer and maintaining it in his account until: The expiry of the guarantee period and its value in the said customer’s account is:
- The existence of a legal prohibition regarding it.
- The existence of a legal objection by the bank or the concerned customer regarding this check or said claim. -2 For the concerned bank, if the customer’s account is closed, it shall deduct from his account an amount equal to the value of the checks included in Article 1 of this article. The checks, included in this article, may be for the customer’s benefit and are among the investment deposits, savings accounts, and time deposits of banks in Lebanon, subject to the conditions specified in them, including Circular No. 158 and Circular No. 166.
Article 2: This circular takes effect from the date of its publication. Article 3: This circular is registered in the General Secretariat.
Issued on October 10, 2024 Governor of the Central Bank of Lebanon [Signature] Wissam Mansouri