Lebanese Parliament Passes Law Revamping Banking Secrecy

Lebanon’s parliament has passed significant amendments to its banking secrecy laws, introducing a ten-year retroactive period, expanding access to financial information for auditing firms and oversight bodies, and shifting enforcement authority to the Council of Ministers. The new legislation, a key condition for securing a $3 billion IMF aid package, enables authorities to investigate accounts by name and grants oversight agencies such as the Banking Control Commission the power to access account details, aiming to enhance transparency and combat corruption. The law now explicitly allows the lifting of banking secrecy for auditors and administrators appointed by the central bank or the Banking Control Commission, following extensive consultations with the IMF. These changes align Lebanese regulations with international standards and are expected to facilitate investigations into financial crimes such as money laundering and tax evasion, addressing long-standing concerns over the role of banking secrecy in enabling corruption and financial mismanagement that contributed to Lebanon’s ongoing economic crisis.