The use of online services in the field of banking, amongst others, is gradually gaining appeal in Lebanon. In an attempt to regulate this market, the Central Bank of Lebanon recently issued Intermediate Circular # 393, banning all banking operations from being executed through portable or fixed electronic devices between clients of different banks, unless they are to receive money transfers. These money transfers cannot take place using an application or any other program installed on the client’s device but can only be executed through the traditional SWIFT network adopted by commercial banks. Moreover, no form of electronic money can be issued or traded by any given party.
The Central Bank also required commercial banks to be diligent when it comes to the consumers involved in these money transfers. The back office of banks involved in electronic money transfers should make sure the transaction is in conformity with rules and regulations. Banks should also rely on official documents to run a check on the identity of clients and their addresses. Special records are to be held for clients executing electronic money transfers worth $10,000 or more and a copy of these records should be held by banks for no less than five years.
Smartphone Penetration in Selected MENA Countries
Source: IPSOS