Lebanon imposes stricter rules on cash transfers

Report by Lea Fayad, English adaptation by Yasmine Jaroudi 

Handling cash transactions in Lebanon has become far more regulated, with authorities now requiring detailed disclosures for many financial operations. 

Any cash exchange, transfer, or receipt exceeding $1,000 through licensed money changers, transfer companies, or financial institutions now triggers requirements similar to those imposed by banks.

Individuals are asked to present identification and to fill out forms detailing the source of their funds, the nature of their work, the scale of their activity, their sources of income, and their place of residence. Supporting documents, such as proof of tax payments and other official records, are also required. All information is transmitted to the Banque du Liban (BDL).

The measures are part of BDL's efforts to tighten control over cash circulation through its monitoring system, aimed at combating money laundering and preventing illicit funds from reaching entities subject to international sanctions, including Hezbollah.

Lebanon's long-standing cash-based economy has facilitated tax evasion, deprived the state treasury of much-needed revenue, and created an unfair advantage for taxpayers who comply with the law. It has also fueled smuggling and illegal speculation, complicated Lebanon's foreign financial dealings, and undermined confidence in the country's economic system. Addressing these issues was a key condition for Lebanon's removal from the Financial Action Task Force (FATF) gray list.

Despite the tighter oversight of licensed institutions, authorities acknowledge that unlicensed operators, including illegal money changers, remain outside the regulatory framework. 

Officials are urging the public to avoid dealing with unlicensed outlets, warning that such practices contribute to corruption and to terrorism financing, and ultimately expose individuals to legal and financial risks.