Intermediary Decision No. 13619 Amending the Regulations on Monitoring Financial and Banking Operations to Combat Money Laundering and Terrorist Financing

Intermediary Circular No. 692
To Banks, Financial Institutions, and Leasing Companies, and Institutions Issuing and Promoting Payment or Credit Cards Operating in Lebanon

We enclose a copy of Intermediary Decision No. 13619 dated 15/2/2024 concerning the amendment of the system for monitoring financial and banking operations to combat money laundering and terrorist financing, attached to Basic Decision No. 7818 dated 18/5/2001, subject of Basic Circular No. 83.

Beirut, on 15 February 2024
Governor of the Central Bank of Lebanon
Acting
Dr. Wissam Mansouri

Intermediary Decision No. 13619
Amending "The System for Monitoring Financial and Banking Operations to Combat Money Laundering and Terrorist Financing"

The Acting Governor of the Central Bank of Lebanon, pursuant to the provisions of the Monetary and Credit Law, particularly Articles 170, 174, and 182 thereof, and pursuant to the provisions of Law No. 44 on Combating Money Laundering and Terrorist Financing dated 24/11/2015, particularly Article 4 thereof, and pursuant to Basic Decision No. 7818 dated 18/5/2001 and its amendments concerning the system for monitoring financial and banking operations to combat money laundering and terrorist financing, and pursuant to Basic Decision No. 13439 dated 27/5/2022 concerning the monitoring of public officials' accounts, and pursuant to the results of National Assessments for Combating Money Laundering and Terrorist Financing, which considered that money laundering crimes related to corruption are high-risk, and pursuant to the decision of the Central Council of the Central Bank of Lebanon taken in its meeting held on 15/2/2024, decides the following:

Article One: The text of Item (4) of Article 10 of "The System for Monitoring Financial and Banking Operations to Combat Money Laundering and Terrorist Financing" attached to Basic Decision No. 7818 dated 18/5/2001 is repealed and replaced with the following text:
« Establishing within the "Verification Unit" two departments, at least, the first supervising the main center and branches of the bank, and its duties include ensuring the application of monitoring standards in the center and branches regarding compliance with money laundering and terrorist financing procedures, and the second dealing with "Anti-Corruption & Bribery" (Corruption & Bribery), and its duties include the following tasks:
1- Formulating a bank policy to combat corruption and bribery in line with the requirements and recommendations issued by local regulatory and supervisory authorities and international organizations, and publishing a statement on the bank's electronic website indicating its commitment to combating corruption and bribery. 2- Conducting periodic reviews of the effectiveness of procedures followed in combating corruption and bribery, and working to develop them to mitigate risks. 3- Updating the guide related to the General Principles of Professional Conduct (Code of Conduct & Ethics) to include the adopted corruption and bribery standards, and preparing a booklet on the key indicators of corruption and bribery to be addressed by employees. ../.. -2- 4- Evaluating corruption and bribery risks to which the bank is exposed as a result of services and products it provides to its clients, and specifying, in this regard, the category of high-risk clients. 5- Conducting, according to the risk-based approach, monitoring and reviewing accounts of clients exposed to risks of corruption and bribery, and ensuring compliance with the required obligations regarding them, including applying enhanced continuous due diligence procedures and obtaining the necessary administrative approvals. 6- Conducting the necessary review of non-routine transactions related to recognized corruption or bribery indicators, particularly those referred to in Basic Decision No. 13439 dated 27/5/2022 (Basic Circular No. 163) and in the guidance guide on corruption indicators issued by the Special Investigation Commission, and conducting the necessary auditing and documentation, with a view to notifying the Special Investigation Commission upon suspicion. 7- Monitoring all corruption and bribery cases addressed in the media or by official authorities or any other sources, with the aim of verifying whether they are related to transactions at the bank. 8- Organizing training courses for employees on combating corruption and bribery, and fostering a culture of integrity in the bank ».

Article Two: This decision shall take effect upon its issuance.
Article Three: This decision shall be published in the Official Gazette.

Beirut, on 15 February 2024
Governor of the Central Bank of Lebanon
Acting
Dr. Wissam Mansouri