Lebanon’s Anti-Money Laundering and Know-Your-Customer Regulations: A Guide to Compliance
In a bid to combat financial crimes, the Lebanese government has implemented stringent regulations aimed at preventing money laundering and terrorist financing. These regulations require businesses operating in Lebanon to adhere to strict know-your-customer (KYC) and anti-money laundering (AML) guidelines.
Document Verification
To verify identities, businesses must check for security features such as:
- Holograms
- Tapered/crumpled edges
- Doctored elements
- Form inconsistencies
- Document expiration
- MRZ (Machine Readable Zone)
- Reflected colors
- Microprinting
Acceptable documents include:
- Passports
- Driver’s licenses
- National identity cards
- Residence permits
Address Verification
To verify addresses, businesses can accept:
- Utility bills (no older than three months)
- Government-issued documents
- Bank statements (no older than three months)
Timing of Verification
Identity verification is not a one-time process. It is required in multiple instances as per regulations. The timing of verification depends on business requirements and conveyance to Shufti Pro.
Politically Exposed Persons and Enhanced Due Diligence Measures
Under Lebanese regulations, businesses must determine if customers are Politically Exposed Persons (PEPs) or exhibit a higher risk profile. To fulfill these obligations, Shufti Pro provides AML screening services that screen individual ID attributes against global watchlists and domestic databases.
Reliance on External Services
Lebanese regulations allow businesses to seek the services of third-party providers for due diligence measures. However, businesses remain liable for maintaining compliance and fulfilling AML and KYC obligations.
Record Retention
As per Lebanese regulations, businesses are required to retain data for not less than five years as part of their AML and KYC obligations. In cases where this information is processed, collected, and managed by a third-party provider, businesses are liable to collect necessary information without undue delay.
Conclusion
Shufti Pro’s comprehensive guide highlights the importance of complying with Lebanon’s anti-money laundering and know-your-customer regulations. By understanding these requirements, businesses can ensure they are in compliance with local laws and regulations, reducing the risk of financial crimes and reputational damage.