Financial Crime World

Data Protection Law in Lebanon: A Comprehensive Overview

Data Protection Legislation

In Lebanon, the primary legislation governing data protection is Law 81, which outlines key provisions for data controllers to obtain permits and licenses before processing personal data. This legislation serves as a foundation for understanding data protection requirements in the country.

Under Law 81, consent is not a condition for data transfer, but there are specific requirements that must be met:

  • The personal data owner must be informed of the intended recipients of the data.
  • The data collector must ensure that necessary security measures are taken by the other recipients.

Breach Notification

Unfortunately, there is no specific breach notification provision in Lebanese law. This lack of clarity can make it challenging for organizations to respond promptly and effectively in the event of a data breach.

Fintech Regulation

Lebanon has not adopted a specific legal framework regulating Fintech activities. Instead, these activities are governed by regulations applicable to banks, financial institutions, and other institutions licensed by the Central Bank of Lebanon (BDL).

Enforcement

Violations under different laws can result in severe penalties:

  • Data protection violations: fines ranging from LBP 1 million to LBP 30 million and imprisonment from three months to three years.
  • Insider trading violations: sentencing to a term of imprisonment of one to three years, and fines not less than twice and not more than ten times the value of any unlawful gain.
  • AML/CFT rule violations: several sanctions including imprisonment for a period of two months to one year, a fine not exceeding LBP 100 million, or both.
  • Banking secrecy violations: three months to one-year imprisonment.

Key Practitioners

Souraya Machnouk and Thierry Abou Jaoude, partners at Abou Jaoude & Associates Law Firm, specialize in data protection law among other areas. They provide strategic advice on regulatory compliance, helping businesses navigate the complex landscape of data protection laws and regulations in Lebanon.

Conclusion

The report provides a comprehensive overview of the current state of data protection laws and regulations in Lebanon, highlighting both opportunities and challenges for businesses operating within this jurisdiction.