Lebanese Parliament approves landmark amendments to banking secrecy law for financial reform

BEIRUT — In a major move toward financial reform, the Lebanese Parliament has unanimously approved significant amendments to the Banking Secrecy Law, garnering 87 votes in favor.

The revised version of Article 3 completely lifts banking secrecy without restrictions, granting full access to banking information for the Central Bank of Lebanon, the Banking Control Commission, and officially appointed auditors or independent evaluators.

The new law aims to enhance transparency and accountability, particularly targeting individuals who benefited from financial engineering schemes, capital flight, or the misuse of subsidies. It also permits auditors and auditing firms to access banking data upon requests from the International Monetary Fund (IMF), aligning with IMF conditions tied to Lebanon’s broader financial reform agenda.

The amended law includes a 10-year retroactive period for account information disclosure while retaining a critical accountability clause from previous drafts.

President Michel Aoun signed off on the amendments into law, urging their swift publication to ensure immediate enforcement.

This legislation serves as a cornerstone of Lebanon’s financial reform efforts and is closely tied to the forthcoming banking sector restructuring law and the anticipated capital controls law.