Sending Money from the USA to Lebanon Amid the Banking Crisis

How can you send money to Lebanon from the US?

Ask each provider specifically: will my family receive cash in dollars, or a deposit into a bank account that might carry restrictions? This distinction matters more here than for most other Arab countries because of the banking crisis.

Lebanon's banking crisis: what does it mean for your transfer?

Since late 2019, Lebanon has been in a severe financial and banking crisis during which the Lebanese pound lost the large majority of its value after decades of being pegged near a fixed rate to the dollar. Lebanese banks — without one comprehensive published law fully mandating it — restricted account holders' ability to withdraw dollars deposited before the crisis, a situation known locally as the problem of "trapped dollars." In March 2025, a new governor took over Banque du Liban amid ongoing efforts to reform the banking sector and plans to gradually compensate depositors, starting with smaller depositors.

What this means specifically for your transfer: new money you deposit today into a Lebanese bank account may be treated under different rules than pre-crisis frozen deposits, but the situation varies bank by bank and keeps changing over time. Don't assume a bank deposit means your family can withdraw the full amount in cash immediately — ask your family about their specific bank's current practice for new transfers before choosing that route.

How do you work out the real cost of sending to Lebanon?

1. Fix the dollar amount you'll pay, say $500, fees included.
2. Ask about the actual payout method first: cash in dollars, or a bank deposit that might carry restrictions.
3. Get a quote from three providers for the exact same payout method.
4. Compare the amount your family will actually hold in hand, not just the number shown on screen.

We don't endorse a specific provider — conditions in Lebanon shift quickly. What matters is asking very precisely what happens after the money arrives, rather than assuming it behaves like a transfer to any other country.

What are your rights under the US international transfer rule?

The CFPB explains that this rule covers consumer transfers from the US of more than $15, sent through providers handling more than 500 transfers a year.

• Pre-payment disclosure of fees, exchange rate, and the expected delivery amount.
• A post-payment receipt stating the expected delivery date.
• 30 minutes to cancel for free, unless the money has already been picked up.
• 180 days to report an error, with the provider required to investigate.

These rights cover the US transfer provider itself, not what happens to the money once it enters the Lebanese banking system. If the transfer never arrives at all, contact the provider immediately and keep your transfer number.

The new 1% remittance tax since 2026

Per the IRS, since January 1, 2026, a 1% tax applies to a transfer if you pay the provider in cash, a money order, or a cashier's check. Funding from a bank account or a debit or credit card is not subject to it.

If you send money monthly in cash, linking the transfer to your bank account saves you this 1% automatically. See our guide to opening a US bank account if you don't have one yet.

Which payout method suits your family in Lebanon?

Cash pickup in dollars from a licensed transfer company's branch is the clearest option for most families today, since it puts the money directly in your family's hands without going through bank withdrawal restrictions. Depositing into a bank account may suit a specific formal transaction that requires bank documentation, but ask the bank specifically about the withdrawal rules for this new deposit before choosing it. Digital wallets are becoming more common and can be a practical alternative, but verify it genuinely has no withdrawal or transfer restrictions inside Lebanon.

Do you owe gift tax on money sent to family in Lebanon?

US gift tax generally falls on the giver, not the recipient in Lebanon. Each recipient has an annual exclusion the IRS set at $19,000 for 2026.

• Sending your father $6,000 over the year is under the exclusion — no reporting required.
• Exceeding the exclusion for one person in one year means filing Form 709, which doesn't necessarily mean you owe tax.

For US tax basics, see our US taxes guide, and if you hold an old bank account in Lebanon, check our FBAR foreign accounts guide.

Informal hawala and scams: how do you protect yourself?

Amid the banking crisis, some people turn to informal brokers assuming they're faster. But FinCEN treats any money-transmitting business, informal hawala included, as required to register with it. With an unregistered broker, you lose the cancellation and error-resolution rights described above.

The CFPB warns against urgent transfer requests from "relatives" over the phone, and requests to pay with gift cards or crypto. Verify any such contact through the agency's official number first.

Does the experience differ between Beirut and other areas?

In Beirut and its suburbs, you'll find many transfer-company branches, and cash pickup is usually fast, same-day. In other cities like Tripoli, Sidon, or parts of the Bekaa, branches may be fewer, so ask your family about the nearest actual branch before picking a provider. Some companies advertise "all of Lebanon" coverage, but the closest real branch could be a meaningful distance away.

If your family lives in an area with frequent power outages, they may prefer a provider that confirms pickup with a simple text message rather than an app requiring a stable internet connection.

Extra practical notes for transfers to Lebanon

• Ask about currency before sending: will your family receive cash dollars, or Lebanese pounds at a specific rate? The difference can significantly affect actual purchasing power.
• Don't assume bank stability: each Lebanese bank's rules toward new deposits differ and keep changing, so ask your family about their most recent actual experience, not old information.
• Keep receipts: each receipt proves the source and date of funds, useful later for your US tax return.
• Name spelling: write the recipient's name exactly as it appears on their ID or passport to avoid delaying pickup.
• Time difference: transfer branches in Lebanon run on Beirut time, so an evening US Eastern transfer may not be picked up until the next day.

Is it worth asking your family about their specific bank before choosing?

Yes — this is one of the most important practical tips for sending money to Lebanon today. Lebanese banks' relationships with Banque du Liban and their internal policies toward new deposits differ from bank to bank, and shift as banking-sector reform plans progress. Don't rely on what a friend told you a year ago or an article you read; ask your family directly: if we deposit money into your account today, can you withdraw it fully in cash within days? Their actual answer is more accurate than any general rule.

Common mistakes when sending to Lebanon

• Assuming a bank deposit is safer despite possible withdrawal restrictions on new deposits.
• Not asking what currency your family will actually receive.
• Paying in cash when bank funding is available, paying the 1% unnecessarily.
• Relying on an unregistered broker assuming it's the only option available.
• Relying on outdated information about a specific bank instead of confirming the current situation.

What's next?

If you send money to family in Lebanon regularly, prefer cash pickup or a digital wallet unless you have a clear reason for a bank deposit, and ask your family about their actual experience with each provider. Budget the transfer as part of your US cost of living plan.

Frequently asked questions

Official sources we reviewed

• CFPB: What Are My Rights When I Send Money Internationally? ↗
• IRS: Proposed Regulations on the New Remittance Transfer Tax ↗
• IRS: Frequently Asked Questions on Gift Taxes ↗
• FinCEN: Money Services Business (MSB) Registration ↗
• CFPB: Warning Signs of Fraud and Scams ↗