E-Wallets Under Pressure as Lebanon’s Central Bank Tightens Oversight

No grounds for money laundering charges

English version based on the Arabic-language article published by Akhbar al-Yawm

In crisis-hit Lebanon, digital wallet services and money transfer platforms have become a vital alternative to the country’s paralyzed banking sector, helping citizens carry out financial transactions amid unprecedented restrictions. But recent regulatory moves by the Banque du Liban(BDL) are raising concerns among operators.

The BDL recently issued Intermediate Circular 735, warning digital finance providers, including e-wallet companies and money transfer platforms, that their licenses may be revoked if they fail to adhere to approved business plans within six months or have not yet launched operations despite holding permits.

A source in the sector have criticized, via the "Akhbar al-Yawm" agency,  the move as overly broad and potentially damaging to compliant companies, saying: "You can’t punish everyone for the mistakes of a few", warning against a "blanket penalty" that could harm well-regulated firms operating transparently.

The circular also introduced tighter limits on account balances for both individuals and businesses, prompting fears that such restrictions could curb growth and innovation in Lebanon’s nascent digital finance ecosystem.

In the same context, the sources rejected claims that e-wallets contribute to money laundering. On the contrary, they argue that these platforms enhance financial oversight: "E-wallets provide detailed transaction logs (amounts, timestamps, user IDs) that enable authorities to trace illicit funds far more efficiently than with cash-based systems". 

They point out that gaps in legislation remain a major challenge but argue that this is a legislative, not private sector, issue. "If regulation hasn’t kept pace with financial technology, it’s up to Parliament to act", the source added.

Despite their growing utility, digital wallets are not viewed as a substitute for the traditional banking sector. "They can facilitate payments and transfers, but they can’t replace lending, deposit-taking, or wealth management services. We hope the banking system will recover its core role, particularly in credit and investment", the source added.

Nevertheless, e-wallets are seen as an essential pillar of financial inclusion, offering access to basic financial services for unbanked populations and helping to digitize everyday economic activity in a country still reeling from multiple overlapping crises.