The Central Bank of Lebanon is preparing to issue a new directive tightening control over domestic money transfers, in a move widely seen as part of stepped-up efforts to combat money laundering and curb potential channels of funding for Hezbollah.

According to information obtained by LBCI and Al-Modon, the Central Bank will soon circulate a new regulation to money changers and money transfer companies requiring the implementation of an electronic Know Your Customer (E-KYC) process for anyone transferring funds of $1,000 or more within Lebanon.

The directive, recommended by Central Bank Governor Karim Souaid, is part of a broader framework aimed at reinforcing compliance with international standards on anti–money laundering (AML) and countering the financing of terrorism (CFT). The measure also reflects heightened U.S. scrutiny over Lebanon’s financial system and efforts to restrict Hezbollah’s access to funding channels.

The decision follows discussions held during a recent visit to Beirut by a U.S. delegation led by Sebastian Gorka, who raised the issue directly with Governor Souaid. The delegation reportedly urged Lebanese authorities to strengthen financial monitoring and align local practices more closely with U.S. and international compliance mechanisms.

In parallel, the Central Bank has begun implementing a series of new oversight measures targeting the growing “cash economy” and unregulated financial transactions inside Lebanon. The goal, officials say, is to track the movement of funds, reduce the circulation of undeclared cash, and ensure that large-scale money exchanges are properly documented.

According to Al-Modon, the Central Bank recently convened a meeting with several key stakeholders, including the Syndicate of Money Changers, to outline the new procedures. Participants were instructed to complete a dedicated form for every client exchanging or transferring $1,000 or more, requiring full disclosure of the source and destination of funds.