Regulatory Alerts2024-06-24
Circular No. 6/2024
The Central Bank of Libya issued Circular No. 6/2024 to establish comprehensive regulatory requirements for the licensing, governance, and operational compliance of payment institutions. The directive mandates minimum capital thresholds, fit-and-proper assessments for key personnel, robust AML/CFT and cybersecurity frameworks, and standardized reporting protocols. It further empowers the Central Bank to conduct on-site inspections, enforce penalties for non-compliance, and suspend or revoke licenses to ensure financial stability.
Central Bank of Libya | swift code: CBLJLYLX | +21 444.1488; +21 333 3591 | www.cbl.gov.ly (2024/6) | 1445 AH / 29 April 2024 Circular No. 6/2024
Pursuant to the Payment Services Law No. 20 of 2005, and in light of the Executive Regulations issued under Circular No. 5/2018 dated 13 January 2018, and Circular No. 2/2021 dated 4 April 2021, the Central Bank of Libya hereby issues this Circular to regulate the establishment and operation of payment institutions.
Chapter 1: General Provisions Article 1.1: Definitions and scope of application. Article 1.2: Applicability to all payment institutions, service providers, and financial entities operating within the Kingdom of Libya. Article 1.3: Central Bank's supervisory authority and regulatory powers.
Chapter 2: Licensing and Establishment Article 2.1: Application procedures for payment institution licenses. Article 2.2: Minimum paid-up capital requirements and funding sources. Article 2.3: Fit and proper criteria for shareholders, board of directors, and senior management. Article 2.4: Corporate governance framework and internal control mechanisms.
Chapter 3: Operational Requirements Article 3.1 to 3.14: Comprehensive regulations covering payment services, IT infrastructure and cybersecurity, risk management frameworks (credit, liquidity, operational, market), anti-money laundering and counter-terrorist financing (AML/CFT) compliance, outsourcing arrangements, consumer protection standards, data privacy, and mandatory reporting obligations. Article 3.15: Requirements for payment system operators and settlement finality.
Chapter 4: Supervision, Reporting, and Enforcement Article 4.1 to 4.14: Detailed provisions on on-site and off-site supervision, inspection rights, reporting formats and frequencies, capital adequacy monitoring, compliance audits, penalties for regulatory breaches, suspension or revocation of licenses, and dispute resolution mechanisms. Article 4.15: Central Bank's authority to issue directives, guidelines, and amendments to this Circular.
Contact Information: Central Bank of Libya | www.cbl.gov.ly | swift code: CBLJLYLX +21 444.1488 | +21 333 3591 Issued in accordance with the statutory powers of the Central Bank, effective from the date of publication.