The Banque du Liban (BDL) now prohibits any financial relationship with unauthorized entities, specifically targeting the Al-Qard Al-Hassan association. The ball is now in the Ministry of the Interior’s court, which is called upon to officially revoke its license to ensure full enforcement of this major decision.
The circular (No. 170) published by the Banque du Liban, accompanied by Basic Decision No. 13335, marks a decisive turning point in regulating the Lebanese financial sector. By formally banning banks and financial institutions from any relationship with unauthorized entities, particularly the association Al-Qard Al-Hassan, the Banque du Liban is taking firm action to protect the national economy and restore confidence in the banking system. Specifically targeted are the Association Al-Qard Al-Hassan, the organisation Sayyed Al-Shuhada, and the organisation Al-Imdad.
For this measure to be fully effective, it is now imperative that the Ministry of the Interior take responsibility and proceed without delay to withdraw the licenses granted to these associations.
BANQUE DU LIBAN
Basic Circular No. 170
To the attention of:
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Banks and financial institutions
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Auditors of institutions supervised by the Banque du Liban
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Financial intermediation companies
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Collective investment funds
Subject: Transmission of Basic Decision No. 13335 dated July 14, 2025, concerning precautionary measures aimed at protecting the Lebanese financial and economic sector against unauthorized entities and those subject to sanctions imposed by foreign authorities.
Please find attached a copy of the aforementioned decision.
Done in Beirut, July 14, 2025
Governor of the Banque du Liban
Karim Souhaid
Basic Decision No. 13335
Precautionary Measures for Protecting the Lebanese Financial and Economic Sector Against Unauthorized Entities and Those Subject to Foreign Sanctions
The Governor of the Banque du Liban,
Considering:
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The Law on Currency and Credit, notably articles 70, 174, 182, and 184
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Law No. 44 of November 24, 2015, relating to combating money laundering and terrorist financing
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Law No. 161 of August 17, 2011, relating to financial markets
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The regulation on the functioning of financial markets published by the Financial Markets Authority on October 10, 2016
And considering:
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That the Banque du Liban prohibits any banking activity carried out without prior license
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Compliance requirements imposed by international standards on combating money laundering and terrorist financing (FATF)
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The necessity to protect the reputation, stability, and integrity of the Lebanese financial and economic sector
Decides as follows:
Article 1: Prohibition of Any Relationship with Unauthorized Entities
It is strictly forbidden for banks, financial institutions, financial intermediation companies, collective investment funds, and other entities supervised by the Banque du Liban to enter into direct or indirect relationships with entities not authorized to conduct financial activities in Lebanon, whether or not they are subject to foreign sanctions.
Specifically targeted, without this list being exhaustive:
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The Association Al-Qard Al-Hassan
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The Company Sayyed Al-Shuhada
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The Company Al-Imdad for Financing and Investment
Consequently, these entities are prohibited from:
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Opening or managing bank accounts
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Accessing banking or financial services of any kind
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Receiving financing or conducting operations in foreign currency or Lebanese pounds
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Directly or indirectly using the infrastructures of the Lebanese banking system
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Using affiliated associations or entities to circumvent this prohibition
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Carrying out any advertising or promotional activities in their name
Article 2: Sanctions for Non-Compliance
Any violation of the provisions of this decision exposes the offenders to sanctions, which may include:
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Suspension or revocation of their license
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Freezing of accounts, assets, and related operations
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Referral to the Special Investigation Commission
Article 3: Commitment of the Banque du Liban
The Banque du Liban affirms that it will take all necessary administrative and legal measures to ensure the strict application of this decision.
Article 4: Entry Into Force
This decision enters into force on the date of its publication.
Article 5: Official Publication
The decision will be published in the Official Gazette of the Lebanese Republic.
Done in Beirut, July 14, 2025
Governor of the Banque du Liban
Karim Souhaid
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