Central Bank of Libya Circular No. 4/2012: Activation of Goods and Production Means Imports via Foreign Remittances

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Central Bank of Libya P.O. Box: 1103. Telegram Address: Masr, Libya - Tripoli, Libya Reference: I.R.N 804 Circular No. (2012/4) Date: 7 Rabi' al-Awwal 1433 AH Corresponding to: January 30, 2012 AD

To: General Managers of Commercial Banks To: Heads of Temporary Administrative Committees in Commercial Banks To: General Manager, Libyan External Bank

Subject: Activation of goods and production means import operations, using foreign remittances.

Based on the provisions of Law No. (1) of 2005 regarding Banks. And referring to Circular I.R.N No. (2006/13) issued on July 26, 2006, regarding diversifying payment methods and procedures for financing imports using bank remittances issued for commercial purposes.

And to Circular I.R.N No. (2009/5) issued on April 19, 2009, regarding amending the settlement period for foreign remittance amounts for commercial purposes to a maximum of four months. And Circular I.R.N No. (2010/7) issued on April 21, 2010, regarding granting permission to commercial banks to conduct foreign remittances to finance the import of raw materials and operational supplies for industrial entities.

And in reference to our periodic letter No. (2011/146) communicated to you on October 17, 2011, regarding the confirmation of the necessity to directly accept applications for opening letters of credit for import purposes, within the priorities specified for imports by the Economic Affairs Department at the Executive Office of the National Transitional Council.

And based on what was reached in the meeting between the Deputy Governor and the Heads of Temporary Administrative Committees in Commercial Banks on January 17, 2012.

We inform you that it has been decided to permit commercial banks to directly accept applications for conducting foreign remittances related to the import of goods and production means, in accordance with the procedures and controls outlined below:

1. The attached form to this circular shall be used to execute foreign remittances for economic professionals, companies, and commercial/industrial professionals.

Phone: +218 21 3333591, Fax: +218 21 444 1488, www.cbl.gov.ly, swift code: CBLJLYLX

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Central Bank of Libya P.O. Box: 1103. Telegram Address: Masr, Libya - Tripoli, Libya

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2. The customer shall fill in the personal data as shown in the referenced remittance application form, along with data related to the Chamber of Commerce and Industry, and data related to the Local Council. The form is then forwarded to the commercial bank managing the customer's account, which completes its data and forwards it, supported by an initial invoice (specifying the types and value of goods to be supplied), to the Banking and Currency Control Department for decision by the competent committee.
3. The value of remittances for commercial and industrial companies shall not exceed $500,000.00 USD, or its equivalent in foreign currencies, per year.
4. The customer shall deposit a financial guarantee worth 25% of the remittance value in Libyan Dinars, in addition to the remittance amount to be executed. The guarantee amount is refunded upon completing the necessary settlement with the bank, in accordance with established procedures.
5. Compliance with import priorities specified by the Ministry of Economy, according to instructions issued by the Central Bank of Libya.
6. Compliance with reporting entities that fail to settle their remittances executed for this purpose within the specified deadlines outlined in Circular I.R.N No. (2009/5) mentioned above.
7. Adherence to completing forms executed for Customer Due Diligence (KYC) policies circulated in Circular I.R.N No. (2012/7) issued on February 27, 2007, and procedures and controls related to anti-money laundering.
8. Compliance with submitting a weekly statement of foreign remittances executed for commercial and industrial purposes to the Banking and Currency Control Department, as per established practice.

...And peace, mercy of Allah and blessings be upon you.

Dr. Mohammed Abduljalil Abousnina Director, Banking and Currency Control Department

• To the Governor.
• To the Deputy Governor.
• To the Undersecretary of the Ministry of Economy and Trade.
• To the Undersecretary of the Ministry of Finance.
• To the Undersecretary of the Court of Audit.
• To the Director General of Customs Affairs.
• To the Director, Legal Affairs Department, Central Bank of Libya.
• To the Director, Accounts Department, Central Bank of Libya.
• To: General Managers of Central Bank of Libya branches (Benghazi, Sabha, Sirte).
• To the Data and Statistics Department.

Phone: +218 21 3333591, Fax: +218 21 444 1488, www.cbl.gov.ly, swift code: CBLJLYLX

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Stamp/Seal Approval No.: ....................

Central Bank of Libya Approval Form for Foreign Remittances for Commercial Purposes

Day: .................... Corresponding to: ....................

(1) Personal Data: Name (four parts), and Title/Role: .................................................................................... Business Name: .................................................................................................... Date of Commencement of Activity: ........................................................................................ Type of Activity: .................................................................................................... Legal Form: ............................................................................................... Commercial Registration No.: .......................................................................................... Type of Application: .................................................................................................... Remittance Applicant Number in Suppliers Register: ........................................................................

Invoice No.	Type of Goods	Country of Origin	Invoice Value	Equivalent in Libyan Dinar

Name	ID Card No.	Signature

(2) Chamber of Commerce and Industry: The Chamber of Commerce and Industry certifies that Mr./Ms.: .................................................................... Engages in a (commercial - industrial) activity under the name ................................................................. Under our registration No. .................... dated ...................., and registered in the Commercial Register No. .................... For the purpose of ...........................................................................................................

And the Chamber confirms that the aforementioned conducts his/her activity as: [ ] Regular [ ] Irregular

Approval for Remittance	Not Approved

Reasons

Name	Title	Signature	Stamp

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(3) Local Council (....................): The Local Council of the city of (....................) certifies that the aforementioned is among the working categories in the city, and meets the general standards issued by the Council of Ministers for the Government: [ ] Yes [ ] No

Approved	Not Approved

Reasons

Name	Title	Signature	Stamp

(4) Competent Commercial Bank: Bank Name .................................... Branch .................................... Current Account No. .................................... Date of Opening .................................... Has the aforementioned previously conducted direct remittances: [ ] Yes [ ] No

If yes, how many remittances .................................... Have the issued remittances been settled: ....................................

Number of Remittances	Settled	Unsettled
Count	Value	Count

The bank therefore recommends the following: .................................................................................................................... .................................................................................................................... .................................................................................................................... ....................................................................................................................

Name	Title	Signature	Stamp

(5) Opinion of the Central Bank of Libya: .................................................................................................................... .................................................................................................................... .................................................................................................................... ....................................................................................................................

Name	Title	Signature	Stamp

Note:

• The remittance requires a 25% cash guarantee, refundable after settlement.
• Any delay in settlement subjects the party to legal accountability.