Amendments of Basic Circular #168: Strengthening AML / CFT Regulations

The Central Bank issued on June 4^th, 2024 basic circular #168 that was addressed to banks, financial institutions, leasing companies, institutions that issue and promote charge and credit cards, institutions engaged in electronic financial and banking operations, money dealers and specialized lending entities.

An intermediate decision 13649 was issued on June 27^th, 2024 to modify basic circular # 168 through providing them with standardized attached forms to be filled. This circular required the above mentioned banks, companies, and institutions to share with BDL legal department by June 30^th, 2024 with the full name, date of birth, and the position of the following parties:

• Shareholders and stockholders that owns more than 5% of shares and stocks.
• Beneficial owners who own and / or exercise effective control over more than 5% of shares and stocks through direct ownership, indirect ownership through a legal person, or through other means.
• Chairman and members of the Board of Directors.
• Senior executive management members.

However, BDL may also request the above mentioned details for shareholders, stock holders or beneficial owners owning less than 5% if the bank, company or institution is not listed on the stock exchange and those owning more than 2% in banks, company or institution listed on the stock exchange.

In case shareholders and stock holders are legal persons, the following information should be provided:

• Name & type of legal persons
• Date of Establishment
• # of shares owned in the bank, company or institution
• % of total shares owned in the bank, company or institution

This circular asked for more specific information, mainly the information about the shareholders of the companies owning in bank, company or institution:

• Name of the company
• Full name and date of birth of the shareholders
• % of shares owned by the shareholders in the company
• % of total shares owned by the shareholders in the company

In case of any change in the sent lists occurred, bank, company or institution shall provide the legal department at BDL with updated listed within one week from the occurrence of the change. In parallel, BDL legal department will continuously verify that the aforementioned names are not designated on any UN, international and national sanction lists.

Banks, companies and institutions must comply with this circular under penalty of revoking their licenses.

As per BDL, this circular is in accordance with:

• Law 44 of November 24^th, 2015 regarding fighting money laundering and terrorist financings
• Basic decision 12147 of December 22^nd, 2015 concerning the implementation of UN Security Council resolutions No 1267 (1999), No 1988 (2011) and No 1989 (2011), in addition to any related successor resolutions
• Basic decision 12253 of May 3^rd, 2016 on dealing with the US Act of December 18^th, 2015
• Financial Action Task Force recommendations.

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