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Lebanese Law on Combating Money Laundering and Terrorist Financing

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Key Provisions

The Lebanese law on combating money laundering and terrorist financing has several key provisions that are essential to understanding its implementation.

Immunity for Officials

  • The law grants immunity to parties referred to in Articles 4 and 5, as well as their staff, supervisors of the Banking Control Commission, and auditors, when performing their duties under the provisions of this Law.
  • This provision aims to protect officials from potential lawsuits or legal repercussions while carrying out their duties.

Penalties for Non-Compliance

  • Any party that violates the provisions of Articles 4, 5, 7, 10, and 11 shall be punishable by imprisonment for a period of two months to one year and by a fine not exceeding one hundred million Lebanese pounds, or either penalties.
  • This provision highlights the severity of the consequences for non-compliance with the law.

Fines for Non-Compliance with Regulations

  • The Higher Banking Commission may impose fines on parties that were referred to it for non-compliance with the regulations issued for the purpose of implementing this Law, provided the fine does not exceed two hundred times the official minimum wage.
  • This provision allows the authorities to take corrective action against those who fail to comply with the regulations.

Confiscation of Assets

  • Movable or immovable assets that are proved, by a final Court ruling, to be related to or derived from a money-laundering or terrorist financing offence shall be confiscated to the benefit of the State, unless the owners of the said assets prove in a Court of Law their legal rights thereupon.
  • This provision enables the authorities to seize assets that are linked to money laundering or terrorist financing activities.

International Cooperation

  • The confiscated assets may be shared with other countries, whenever the confiscation results directly from coordinated investigations or cooperation between the concerned Lebanese authorities and the concerned foreign body(ies).
  • This provision highlights the importance of international cooperation in combating money laundering and terrorist financing.

Repeal of Previous Laws

The law repeals the reservations specified in Paragraphs 2, 3, and 4 of Article 1 of Law No 426 of May 15, 1995, on authorizing the ratification of the 1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, as well as the provisions of Article 132 of Law No 673 of March 16, 1998, on Narcotic Drugs and Psychotropic Substances.

Final Provisions

  • The law requires auditors to verify compliance with the provisions of this Law and notify the Chairman of “the Commission” of any violation.
  • The Ministry of Justice, the Beirut Bar Association, the Tripoli Bar Association, and the Certified Accountants Association shall be responsible for verifying compliance by notaries, lawyers, and certified accountants with the measures stipulated in this Law.

Entry into Force

The law shall enter into force upon its publication in the Official Gazette.