You Are One Step Closer to a Fully Paperless Bank! | Saradar Bank | Banks in Lebanon | Personal Banking | A Digital Bank
You Are One Step Closer to a Fully Paperless Bank!
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E-shopping, online banking, and now Bitcoin and other crypto-currencies… the electronic transaction (e-transaction) environment continues to grow in complexity.

In this context of increased electronic payment and trading, there is an urgent need for up-to-date legislation to effectively regulate e-transactions, prevent fraud, and protect data.

Last October, the Lebanese Parliament finally endorsed the much-needed Law no. 81 regulating e-transactions. The law will come into effect in January 2019 and will bring Lebanon’s e-transaction regulation in line with those of other countries.

Law no. 81 introduces new control and monitoring measures to different concerned industries, particularly the strongly established and geographically diverse banking sector.

Are we happy about this?

You bet!

Law no. 81 entrusts the Lebanese Central Bank’s (BDL) with defining the standards of the e-banking system (e-payments, e-checks, and electronic money transfers). 

This paves the way for the notorious e-signature – the key to truly paperless banking (finally!) while having a legal framework that protects both the customer and the bank.

Banks play a pivotal role both in the Lebanese territories as well as abroad, given the large expatriate community. Delays in ratifying the law had previously posed hurdles in the development of this vital sector, causing it to lag behind its global counterparts.

Like our peers, Saradar Bank will wait until the BDL issues the relevant circulars for implementing the law in order to proceed forward.

Well-regulated electronic payment systems are great for commercial banks because they help them extend their customer base and reduce operational costs. This gives us time to enhance our customer services and improve our competitive advantages.

Ok, so what does this mean for you?

Under the provisions of the law, the banking industry will undergo tremendous changes for the sake of providing you, the customer, with greater convenience.

For one thing, you will be able to send authenticated instructions to your bank for any transaction from a remote location, via email and applications, for example.

In terms of personal data, you will have the right to know how your data is stored and used, amend it, or request it to be deleted. The law also introduces changes to the penal code and consumer protection law to cover cybercrimes such as fraud and data breaches. This is in line with BDL Circular 146 that requires Lebanese Banks to comply with the General Data Protection Regulation (GDPR) adopted by the European Union in 2016.

Digital contracts among individuals and businesses are now considered legally binding. You will therefore be required to sign them for different purposes, from advertising products on digital platforms to establishing online businesses.

Furthermore, Law no. 81 calls for establishing a national authority to regulate Lebanon’s country domain name registrations ending with the two-letter country code “.lb” to replace old subcategory domains ending with “.com.lb.”

On another note, the law tackles the topic of crypto-currencies and Blockchain technology in the financial services sector.

You can refer to the official gazette – Issue 45 –  dated October 18, 2018 to check the full text of the law

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