Financial Crime World

LEBANON: Financial Institution Compliance Officer Role Crucial in Banking Sector’s Success

The Lebanese banking sector has experienced significant growth over the past decade, thanks to effective regulation and supervision by the Banking Control Commission (BCC) and the Banque du Liban (BDL). The BCC, established in 1967, is responsible for overseeing banking activities and ensuring compliance with various financial and banking rules and regulations.

Unique Characteristics of the Sector

The sector’s progress can be attributed to its unique characteristics, including:

  • A large number of banks of different sizes, nature, and ownership structure
    • Between 60 to 92 banks operating in the country
    • Including small, medium, and large-size private owned commercial banks, as well as medium and long-term credit and investment banks, Islamic banks, and foreign banks

Global Presence

Lebanese banks have demonstrated significant openness to abroad, with many expanding their operations through:

  • Branches
  • Affiliated companies
  • Subsidiaries
  • Sister banks
  • Representative offices in countries around the world
    • Arab and foreign banks also have a strong presence in Lebanon

Human Resources

The sector’s human resources are highly qualified, with:

  • A high share of university degree holders
  • An important representation of Lebanese women in regular and senior positions
    • Continuous training domestically and abroad ensures that employees remain well-trained, highly qualified, and experienced

Services Offered

Lebanese banks offer a range of traditional and modern services, including:

  • ATM and card services
  • Electronic banking
  • Retail, private, corporate, and Islamic banking
    • Brokerage, consulting, and insurance services

Compliance with International Norms and Standards

Compliance with international norms and standards is a key aspect of the sector’s operations. Lebanese banks adhere to:

  • International best practices and standards
  • Rules and regulations complying with world standards and guidelines set by:
    • Bank for International Settlement (BIS)
    • International Monetary Fund (IMF)
    • FATF/GAFI
    • Other international bodies

Role in the Economy

The sector plays a significant role in the Lebanese economy, dominating:

  • Financial intermediation
  • Providing financing needs to both the public and private sectors
    • The main channel for capital inflows into Lebanon
    • Involved in the financing of a large part of the current account deficit

Performance and Resilience

Despite facing challenges, the sector has demonstrated favorable and sustainable growth and performance, with:

  • Strong balance sheet activity
  • High liquidity
  • Well-capitalized and provisioned banks
  • Good return and risk measures
    • Strong resilience to financial shocks ensures that it can weather any crisis, making it a regional safe haven for stable and profitable placements.