Regulatory Alerts2022-06-07
Central Bank of Libya Circular Letter No. 25/2014 on Banking Accounts for Public Entities
The Central Bank of Libya issued Circular Letter No. 25/2014 to implement the Court of Audit's finding that public entities are opening bank accounts without prior Minister of Finance approval, contrary to the State Financial System Law. The circular instructs all commercial banks operating in Libya to obtain written authorization from the Minister of Finance before opening any accounts for public entities, close non-compliant accounts, and transfer their balances to the Ministry of Finance's General Revenue Account. Furthermore, banks must ensure full disclosure and proper classification of all budgetary (First, Second, Third) and deposit accounts to prevent the mismanagement of public funds.
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