Regulatory Alerts2022-05-17 | 13435Electronic Banking and Financial Operations
The Central Bank of Lebanon issued Central Decision No. 13435 to amend capitalization requirements for institutions conducting financial and banking operations by electronic means. The decision raises the minimum paid-up capital to five billion Lebanese pounds for standard entities and ten billion Lebanese pounds for foreign currency exchange institutions, while mandating that any subsequent capital increases be fully paid in a single lump sum. Non-banking money transfer institutions established prior to this decision are granted until 31 July 2022 to submit capital increase applications and complete all related procedures by 30 September 2022.
Central Circular No. 62
To Banks, Financial Institutions, and Institutions engaged in financial and banking operations by electronic means.
Reference: Circular No. 13435 dated 17/5/2022 concerning the amendment of Central Decision No. 7548 dated 30/3/2000 (Financial and Banking Operations by Electronic Means) attached to Basic Circular No. 69.
Beirut, 17 May 2022
Governor of the Central Bank of Lebanon
Riad T. Safre
Central Decision No. 13435
Amending Central Decision No. 7548 dated 30/3/2000 Concerning Financial and Banking Operations by Electronic Means
The Governor of the Central Bank of Lebanon, Pursuant to the Monetary and Loan Law, particularly Articles 174 and 70 thereof, Pursuant to the provisions of Law No. 133 dated 26/10/1999 concerning the tasks of the Central Bank, And pursuant to Central Decision No. 7548 dated 30/3/2000 and its amendments concerning financial and banking operations by electronic means, And in light of the necessity to verify the capitalization process of money transfer companies by electronic means and any increase thereto, And pursuant to the decision taken by the Central Council of the Central Bank in its meeting held on 11/5/2022,
It is decided as follows:
Article 1: The text of Clause (2-d) of "Article 5" of Central Decision No. 7548 dated 30/3/2000 is repealed and replaced with the following: "2-d. Their capital shall be no less than five billion Lebanese pounds, unless they are institutions engaged in foreign currency exchange operations, which shall be fully paid and deposited in full at the Central Bank. Any increase due shall be fully paid in a single lump sum to the Central Bank."
Article 2: The text of Clause (2) of "Article 6" of Central Decision No. 7548 dated 30/3/2000 is repealed and replaced with the following: "2. Their capital shall be no less than ten billion Lebanese pounds, which shall be fully paid and deposited in full at the Central Bank. Any increase due shall be fully paid in a single lump sum to the Central Bank."
Article 3: The text of Clause (1) of "Article 7" of Central Decision No. 7548 dated 30/3/2000 is repealed and replaced with the following: "1. Their branches operating in Lebanon shall allocate no less than ten billion Lebanese pounds, which shall be fully paid and deposited in full at the Central Bank. Any increase due shall be fully paid in a single lump sum to the Central Bank."
Article 4: Non-banking institutions engaged in electronic money transfer operations, established prior to the issuance of this decision, are granted a maximum deadline of 31/7/2022 to submit capital increase applications and deposit this increase at the Central Bank, with all procedures to be completed by a maximum deadline of 30/9/2022.
Article 5: This decision shall take effect upon its issuance.
Article 6: This decision shall be published in the Official Gazette.
Beirut, 17 May 2022
Governor of the Central Bank of Lebanon
Riad T. Safre