Financial Crime World

Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Compliance in Lebanon

Overview

This document outlines the requirements and regulations for Anti-Money Laundering (AML) and Know-Your-Customer (KYC) compliance in Lebanon. It covers various aspects of AML/KYC, including identity verification, documents required for verification, address verification, timing of verification, politically exposed persons (PEPs), reliance on external services, and record retention.

Identity Verification

  • Importance: Verifying an individual’s identity is crucial to prevent money laundering and ensure compliance with Lebanese regulations.
  • Security Features:
    • Holograms
    • Tapered/crumpled edges
    • Doctored elements
    • Form inconsistencies
    • Document expiration
    • MRZ (Machine Readable Zone)
    • Reflected page colors
    • Microprinting

Documents Required for Verification

The following documents are considered proof of identity in Lebanon:

  • A valid passport
  • A valid driver’s license
  • National Identity card
  • Residence permit

Address Verification

The following documents are considered proof of address:

  • Current utility bill (e.g., gas, electricity, telephone, or mobile phone bill)
  • Document issued by a government department showing the end-user’s address
  • Bank statement (no older than 3 months) showing the end-user’s address

Timing of Verification

Identity verification is not limited to one-time instance and is required in multiple instances as per regulations.

Politically Exposed Persons (PEPs)

The Enhanced Due Diligence requirements under Lebanese regulations require determining if a customer is a PEP, holds a public office, or exhibits a higher risk profile. Shufti Pro provides an AML Screening service to fulfill these obligations.

Reliance on External Services

Lebanese regulations allow seeking the services of a third party for applying measures of due diligence. However, it is still the responsibility of the individual/company to collect all necessary data from the third party without undue delay.

Record Retention

Data must be retained for not less than five (5) years as part of AML and KYC obligations for due diligence.

These requirements aim to prevent money laundering and ensure compliance with Lebanese regulations.