Lebanon’s Banking Control Commission issued a significant directive to local banks regarding deposit accounts, fees, and commissions, reiterating compliance with existing Central Bank regulations and emphasizing transparency and client protection.

The circular, released Tuesday, references Central Bank Basic Circular No. 147 of September 3, 2019, as amended by Intermediate Circular No. 679 of October 3, 2023, and recalls Circular No. 134 of February 12, 2015, as well as Banking Control Commission Circular No. 281 of March 5, 2015, which govern the principles of conducting banking and financial operations with clients.

Banks are instructed to maintain fee and commission rates on non-cash deposit accounts at levels no higher than those applied prior to October 31, 2019, and to refrain from imposing any new fees or commissions not previously in effect.

The circular also mandates that banks clearly communicate a detailed, updated schedule of fees and commissions for all deposit accounts, including cash and non-cash accounts for individuals and businesses, across all client interaction channels. The schedule must include the historical rates as of October 31, 2019, and be accessible on the bank’s website, downloadable in Excel format, with a prominent link on the homepage.

Implementation of the circular will be monitored by the unit responsible for enforcing banking operation principles, as established under Central Bank Circular No. 134. Additionally, the Internal Audit Unit will independently verify compliance as part of its audit plan.

Dormant Accounts

Banks are required to automatically reactivate all non-cash accounts classified as dormant after October 31, 2019, without requiring clients to visit the branch, within one month of the circular’s issuance.

Accounts may not be deemed dormant as long as Lebanese banks are not fully operational or deposit restrictions remain in place. Moreover, no account may be classified as dormant without exhausting all available means of client communication, including SMS, email, phone calls, account statements, and in-person notifications during KYC updates. All communications must be documented.

The directive further instructs banks to publish awareness campaigns on their websites and social media channels detailing dormant account policies, associated risks, and required client actions. Fees or commissions on dormant accounts may not be altered, including their value or percentage.