Regulatory Alerts2023-07-12
Central Bank of Libya Circular 17/2012 on External Remittances for Financing Industrial Import of Raw Materials and Operational Requirements
The Central Bank of Libya issued Circular 17/2012 to regulate external remittances for industrial entities importing raw materials and operational requirements. The circular authorizes these entities to conduct foreign currency transfers up to an annual ceiling of 500,000.00 US dollars for goods intended for their own absorption rather than direct resale. Commercial banks are mandated to implement robust tracking systems that prevent duplicate transfers across branches or multiple accounts, ensuring accurate counting toward the single annual limit per entity.
Central Bank of Libya
P.O. Box 1103, Telegram Address: Misrifiya - Tripoli - Libya
Reference: R.M.N/804
Circular R.M.N No. (2012/17)
Date: 19 Ramadan 1433 AH
Corresponding to: 7 August 2012 AD
To: The General Managers of Commercial Banks
The Heads of the Temporary Administrative Committees of Commercial Banks
The General Manager, Libyan External Bank
Greetings...
Subject: External Remittances for Financing the Import of Raw Materials and Operational Requirements for Industrial Entities
Based on the provisions of Law No. (1) of 2005 concerning Banks, and its amendments.
And with reference to Circular R.M.N No. (2010/7) issued on 21/4/2010, concerning granting authorization to commercial banks to conduct external remittances for financing the import of raw materials and operational requirements for industrial entities.
And to Circular R.M.N No. (2012/4) issued on 30/1/2012, concerning directly accepting applications related to the import of goods and production means, using banking remittances, and referring them to the competent committees at the Central Bank of Libya for resolution, in accordance with the controls stipulated in the circular.
And Circular R.M.N No. (2012/9) issued on 28/3/2012, concerning reminding all commercial banks of the corrections to implementing applications submitted for importing goods and production means via external remittances, for commercial purposes.
And within the framework of the Central Bank of Libya's follow-up on the transfer operations implemented by banks, at the request of various entities, to supply goods and production requirements from abroad for all commercial and non-commercial purposes, and working to regulate import operations using direct and indirect banking payment means authorized by the instructions issued by the Central Bank of Libya in this regard, we hereby inform you that the Central Bank of Libya has decided the following:
-1 Industrial entities importing spare parts, production requirements, and raw materials may conduct external remittances to import their necessary needs of an absorptive nature, which are not directly aimed at resale.
-2 The value of the remittance shall not exceed (500,000.00 US dollars), or its equivalent in foreign currencies, per year.
-3 Banks are committed to taking all necessary measures and procedures to limit occurrences of duplication, which may lead to exceeding the permitted annual ceiling for a single entity, if transfers are made through more than one branch of the same bank, or through multiple accounts opened for the entity at different banks. Banks must develop systems that ensure procedural integrity, prevent transfer duplication, and count such cases for a single entity within one year.
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