Lebanon Strengthens Financial Institution Data Protection Laws, Boosts Anti-Money Laundering Efforts
New Legislation Enhances Data Protection and Combats Illicit Activities
Beirut, Lebanon - November 2015
In a bid to further strengthen its financial sector and combat illicit activities, Lebanon has passed new legislation aimed at enhancing data protection laws for financial institutions. This move is expected to boost Lebanon’s position as a hub for international finance while also enhancing its reputation as a leader in combating illicit activities.
What the New Legislation Entails
The Law No. 44 on Fighting Money Laundering and Terrorist Financing introduces stricter regulations on money laundering and terrorist financing, requiring financial institutions to obtain and maintain records of customer identification information. The law also mandates suspicious transaction reporting and facilitates access to banking information and records by judicial authorities.
Key Regulations and Requirements
- Financial institutions must obtain and maintain records of customer identification information
- Suspicious transaction reporting is mandatory
- Access to banking information and records is facilitated for judicial authorities
Regulatory Bodies and Oversight
The Lebanese Central Bank (Banque du Liban - BdL) has been tasked with regulating all financial institutions and money exchange houses in the country, ensuring that they comply with the new regulations. The Banking Control Commission (BCC) closely monitors bank credits, while the National Institute for the Guarantee of Deposits (NIGD) insures up to LBP 5 million ($3,317) of Lebanese and foreign currency deposits in commercial banks.
International Compliance
Lebanese financial institutions have assured compliance with international Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards. Foreigners can now open accounts in banks operating in Lebanon and obtain credit on market terms, although U.S. citizens may require additional information due to FATCA implementation.
Expected Outcomes
The new regulations are expected to further boost Lebanon’s position as a hub for international finance while also enhancing its reputation as a leader in combating illicit activities.