The Central Bank of Lebanon issued Basic Circular 170 and a related decision imposing precautionary measures that prohibit banks, financial institutions and other entities licensed by the central bank, as well as financial brokerage firms and collective investment funds, from engaging in any direct or indirect dealings with unlicensed entities that are subject to sanctions issued by foreign authorities. The prohibition covers financial, commercial or other dealings, including providing or facilitating financial or cash services, transfers or brokerage services, establishing or executing financing, leasing or lending arrangements, and enabling any direct or indirect access to the Lebanese banking system in any currency by the targeted entities or their branches. The decision cites examples such as Al-Qard Al-Hasan Association, Tashilat, Al-Yusr for Finance and Investment and Bayt al-Mal lil Muslimin, and applies more broadly to entities listed on international sanctions lists. Non-compliance may lead to legal action and measures up to licence suspension or withdrawal, freezing of accounts and assets, and referral to the Special Investigation Commission. The measures apply immediately, and the central bank states it will take administrative and legal steps to enforce them, with publication in the Official Gazette.
Central Bank of Lebanon 2025-07-14
Central Bank of Lebanon bans supervised institutions from dealing with unlicensed and internationally sanctioned entities including Al-Qard Al-Hasan
The Central Bank of Lebanon issued Basic Circular 170, prohibiting banks and financial entities from engaging with unlicensed entities under foreign sanctions. This includes financial and commercial dealings, with examples like Al-Qard Al-Hasan Association and others on international sanctions lists. Non-compliance may result in legal action, including licence suspension or asset freezing.