Central Bank of Libya Circular Letter No. 25/2014 on Banking Accounts for Public Entities

Page 1

Central Bank of Libya
P.O. Box 1103 | Telegram Address: MisrLibya - Tripoli - Libya

Reference: ARMN / 731
Circular Letter No. ARMN (25 / 2014)
Date: 22 Jumada al-Awwal 1435 AH
Corresponding to: March 23, 2014 AD ....

To: / General Managers of Commercial Banks To: / Heads of Temporary Administrative Committees of Commercial Banks To: / General Manager - Libyan Foreign Bank Greetings,

This Department has received a letter from the President of the Court of Audit, bearing reference number (19.1032-2014), dated March 18, 2014 AD, addressed to the Governor of the Central Bank of Libya. The letter concerns the Court of Audit's observation regarding certain public entities opening bank accounts without prior approval from the Minister of Finance, in addition to many of them opening other bank accounts not designated for implementing the general budget chapters (First, Second, Third, Deposits), and neglecting to disclose and present them in their accounts. The Court requested, through its letter, that the necessary measures be taken to issue instructions to commercial banks operating in Libya not to open any bank accounts for public entities except with written permission from the Minister of Finance, along with closing any accounts opened in violation and transferring their balances to the General Revenue Account at the Ministry of Finance.

And by reference to this Department's circular No. (ARMN 2009/13) dated December 1, 2009 AD, through which Resolution No. (36) of the year 2009 AD of the Central Bank of Libya Board of Directors was forwarded, concerning the rules governing the opening of bank accounts in commercial banks.

And as we forward to you a copy of the aforementioned letter from the President of the Court of Audit, you are requested to take the necessary measures regarding this matter.

Greetings and God's mercy and blessings,

Abdulmajeed Mohammed Al-Maqouri
Director of Banking and Currency Supervision Department / Acting

---

Copy to: //
The Governor of the Central Bank of Libya.
The Deputy President of the Court of Audit.
The Deputy Minister of Finance.
Banking Follow-up and Compliance Monitoring Department.
M./Boushlom.

Phone: +218 21 333591, Fax: +218 21 444 1488, www.cbl.gov.ly, swift code: CBLJLYLX

---

Page 2

Free Libya
General National Congress
Court of Audit

Reference Number: 19 / 1032
Date: March 18, 2014 AD

To: / Governor of the Central Bank of Libya Greetings,

Based on Law No. (19) of the year 2013 AD, reorganizing the Court of Audit and exercising its assigned authorities, it has been observed through the inspection and review operations conducted on the accounts of public entities subject to its audit that some have opened bank accounts without prior approval from the Minister of Finance, contrary to Article (14) paragraph (2) of the State Financial System Law. In addition, many have opened other bank accounts not designated for implementing the general budget chapters (First, Second, Third, Deposits) and neglected to disclose and present them in their accounts. The clear negligence by financial supervisors and their assistants in entities, accounts, and stores (primarily supervising the financial departments of the concerned entities) was a direct cause in the growth and increase of this phenomenon.

And as the Court highlights the seriousness of this phenomenon and its negative impact on public funds and their uses, it hopes you will take the necessary measures to issue your instructions to commercial banks not to open any bank accounts for public entities except with written permission from the Minister of Finance, along with closing any accounts opened in violation and transferring their balances to the General Revenue Account at the Ministry of Finance.

Greetings and God's mercy and blessings,

A. Khaled Ahmed Shokshok
President of the Court of Audit

Governor's Office
Box 18 - 03 - 2014
Registration No. / 927

---

Copy to:

• The President of the General National Congress.
• The President of the Supervisory Bodies Committee at the General National Congress.
• The Prime Minister.
• The President of the Administrative Control Authority.
• The Minister of Finance.
• The Deputy President of the Court of Audit.
• The Director of the Follow-up Office.
• The Director of the Inspection Office.
• The Director of the General Accounts Examination Department.
• Circular File.
• M. Al-Dahmani & / Mabrouk.

Dahra Square . Tripoli - Libya . 2879 : 021 333 4043 : Dahra Squire . Tripoli - Libya .