Regulatory Alerts2023-09-21
Central Bank of Libya Publication No. 22/2023 on IFRS9 and AAOIFI Standard 30 Implementation
The Central Bank of Libya issued Publication No. 22/2023 requiring all banks and specialized banks to form implementation committees by August 31, 2023, and submit Board-approved transition plans with monthly progress reports by September 30, 2023. The directive mandates a phased adoption of IFRS9 and AAOIFI Standard 30, requiring pilot financial statements by December 31, 2023, and final compliance statements by December 31, 2024. Bank boards are instructed to directly oversee these implementation plans and may engage external experts to ensure technical readiness and risk-based regulatory alignment.
Central Bank of Libya P.O. Box 1103, Telegraph Address: CBL - Tripoli - Libya
Reference: M.R.B.J.N 804
Publication: A.R.M No. (22 / 2023) Date: 23 Dhu al-Hijjah 1444 Corresponding to: July 11, 2023
To: Board Chairmen and General Managers of Banks To: Board Chairmen and General Managers of Specialized Banks
Subject/Preparation for Applying International Financial Reporting Standard No. IFRS9 and AAOIFI Standard (30)
Based on the provisions of Law No. (1) of 2005 and its amendments, and in fulfillment of the Central Bank of Libya's supervisory and oversight role, within the framework of the Central Bank's transition to risk-based regulations in accordance with Basel 3, and with the Central Bank's commitment to supporting and strengthening the financial stability of banks operating in Libya, deepening disclosure and transparency principles toward international best practices, and applying the latest International Financial Reporting Standards (IFRS 9) and Accounting Standard No. 30 issued by AAOIFI.
And based on the Governor's Decision No. (158) of 2023, issued on June 14, 2023, which established a committee to monitor the implementation of International Financial Reporting Standard No. (9) and AAOIFI Standard No. (30).
Therefore, you are requested to:
- Form a committee by August 31, 2023, to develop an implementation plan for the aforementioned standards, assess the implementation process, and submit its formation decision to the Banks and Currency Control Department. The committee shall define a timeframe for implementation, provide all necessary technical and human resources, and banks may engage experts and consultants to assist in completing tasks.
- Submit an approved plan, endorsed by the bank's Board of Directors, to the Banks and Currency Control Department by September 30, 2023. The plan must include a work program for implementing the aforementioned standards and be accompanied by monthly progress reports, covering the following phases:
- Pilot compliance phase: Preparing interim financial statements according to the standards as of December 31, 2023.
- Final compliance phase: Preparing final financial statements according to the standards as of December 31, 2024.
- The bank's Board of Directors shall directly oversee and monitor the implementation of the plans and instructions to be issued regarding this matter.
Peace be upon you,
Naji Muhammad Isa Director, Banks and Currency Control Department
Copies to:
- The Governor
- The Deputy Director, Banks and Currency Control Department for Office Supervision and Compliance Affairs
- The Deputy Director, Banks and Currency Control Department for Inspection Affairs
- The Deputy Director, Banks and Currency Control Department for Islamic Banking Affairs
- The Banking Supervision Office in Benghazi
- Compliance Units in Banks (for follow-up)