Lebanon Enacts Stringent Financial Reforms Amid Global Concerns

Strengthening the Financial Sector

The Lebanese government has taken significant steps to strengthen its financial sector by enacting several laws aimed at combating money laundering, terrorist financing, and insider trading. These reforms are a major step forward for Lebanon’s financial sector, which has faced several challenges in recent years.

Laws Enacted

Law No. 160 (2011): Prohibits insider trading based on material non-public information.
Law No. 161 (2011): Establishes the Financial Markets Commission to regulate and monitor the functioning of financial markets and its participants.
Law No. 44 (2015): Requires Lebanon to join international efforts to suppress the financing of terrorism, introduces stricter regulations on cross-border transportation of money, exchange of tax information, and authorizes the Lebanese government to join the International Convention for the Suppression of the Financing of Terrorism.
Law No. 55 (2016): Promotes international cooperation in taxation by allowing Lebanon to share information with foreign authorities on residents’ income and assets. Introduces a new tax regime, increasing the corporate income tax rate from 15% to 17%, while raising the tax rate on interest and revenue from 5% to 7%.
Law No. 75 (2016): Abolishes bearer or on-hold shares and promissory notes, requiring companies to issue nominal shares instead.
Law No. 48 (2017): Regulates partnerships between public and private sectors.
Recent Amendments: Increased the corporate income tax rate from 15% to 17%, while raising the tax rate on interest and revenue from 5% to 7%.
Article 49 of Law No. 66 (2017): Allows companies to carry out an exceptional revaluation of their fixed assets in a bid to combat inflation.
Law No. 81 (2018): Introduces stricter regulations on electronic transactions and personal data.

Benefits

These reforms are expected to improve transparency and stability in Lebanon’s financial markets, making it easier for the country to comply with international standards. The measures will also help to prevent money laundering, terrorist financing, and insider trading, which can have serious consequences for the economy.

Conclusion

The Lebanese government’s efforts to enact stringent financial reforms demonstrate its commitment to strengthening the financial sector and promoting transparency and stability in the country’s markets. These reforms are a major step forward for Lebanon’s financial sector and will help to improve the country’s economic prospects.