Lebanon Banks Take Compliance Seriously: A Model for Transparency and Accountability
In recent years, Lebanon’s leading banks have been ramping up their compliance procedures to maintain transparency and accountability. The establishment of a dedicated Legal Compliance Unit by Bank of Beirut is a prime example of this trend.
A Response to Regulatory Requirements
The creation of the compliance unit was prompted by Banque du Liban’s Basic Circular 128, which outlines strict requirements for Lebanese banks. The new unit will be responsible for ensuring that the bank adheres to all relevant laws and regulations, identifying potential risks, and taking corrective measures where necessary.
Key Responsibilities of the Compliance Unit
- Identify and assess non-compliance risks associated with new products and activities
- Evaluate the effectiveness of existing procedures in detecting violations or breaches
- Conduct regular tests to verify employee adherence to company policies and procedures
- Implement procedures to ensure compliance with laws, regulations, and directives issued by relevant agencies
- Develop an efficient training program for bank employees to ensure they are aware of and comply with in-force regulations
Enhancing Governance and Risk Management
The compliance unit will provide regular updates to senior management on any developments in the regulatory landscape and advise on necessary amendments. The unit’s proactive approach includes verifying that corrective procedures are applied promptly upon detection of any violation, submitting regular reports detailing any corrective steps taken, along with recommendations for future improvements.
A Commitment to Excellence
The establishment of this compliance unit is a significant step forward for Bank of Beirut and demonstrates its commitment to maintaining the highest standards of governance and risk management. As the regulatory landscape in Lebanon continues to evolve, it’s clear that banks like Bank of Beirut are taking proactive measures to stay ahead of the curve.