Beirut crackdown: Lebanon to tighten cash transfer controls after US delegation visit

Report by Bassam Abou Zeid, English adaptation by Karine Keuchkerian

The U.S. delegation that recently visited Lebanon, led by Deputy Assistant to the President and Senior Director for Counterterrorism Sebastian Gorka, informed Lebanese authorities that Hezbollah is benefiting from domestic money transfers through financial remittances, as well as real estate, gold, and digital currency trading.

In response, the Central Bank of Lebanon, under the direction of Governor Karim Souaid and as part of its measures to combat money laundering and terrorism financing, is preparing to issue a circular to money changers and transfer companies requiring the implementation of electronic Know Your Customer (eKYC) procedures for anyone wishing to transfer funds of $1,000 or more within Lebanon. 

Previously, these requirements applied only to transactions of $10,000 or more.

Under the expected new circular, anyone transferring $1,000 or more will be required to present full identification, prove the source of the funds, and disclose the recipient’s identity and the purpose of the transfer.

The move also follows information received by the Central Bank indicating that some individuals are entering Lebanon carrying multiple financial cards, each containing less than $10,000, which they use to withdraw and transfer money to individuals and entities inside the country.