Lebanon Banks Face Scrutiny Over Compliance Regulations

In a move aimed at ensuring transparency and accountability, Bank of Beirut has established a Legal Compliance Unit to oversee its adherence to relevant laws and regulations.

Mandated by Banque du Liban’s Basic Circular 128

The creation of the unit is mandated by Banque du Liban’s Basic Circular 128. The newly-established unit will be responsible for:

• Identifying legal risks associated with the bank’s activities, particularly those related to new products and services
• Assessing the effectiveness of procedures designed to detect violations or breaches
• Conducting regular tests to verify compliance among employees
• Implementing necessary measures to ensure adherence to regulations issued by Banque du Liban, the Banking Control Commission, the Special Investigation Commission, and other relevant authorities

Strengthening Compliance Efforts

To further strengthen its compliance efforts, the unit will:

• Develop an efficient training program for bank employees, providing periodic sessions on the implementation of laws and regulations in force
• Monitor developments in existing laws and regulations, advising senior management on necessary amendments to ensure ongoing compliance
• Investigate any detected violations or breaches, applying corrective procedures as needed and submitting reports to senior management outlining steps taken to prevent future occurrences

Reporting Significant Violations

The unit is also empowered to report promptly any significant violations or breaches of laws and regulations to senior management.

Importance of Compliance Regulations in Lebanon’s Banking Sector

The establishment of this unit underscores the importance of compliance regulations in Lebanon’s banking sector, as banks face increasing scrutiny from regulatory bodies and international organizations.