Regulatory Alerts2023-11-09
Circular 24/2023
The Central Bank of Libya requires banks to obtain prior approval before launching any new banking product or service, as mandated by Law No. 1 of 2005 and Circular I.R.M.N. (2021/243). Banks must complete and submit the attached application form detailing the product or service’s name, target customers, pricing, risk assessments, outsourcing status, distribution channels, and operational procedures. The Banking and Currency Supervision Department will review the submitted forms to grant or deny approval for the proposed launches.
Central Bank of Libya P.O. Box 1103, Telegram Address: MisrLibya - Tripoli - Libya
Reference: I.R.M. 804 Circular: I.R.M. (24/2023) Date: 29 Muharram 1445 AH Corresponding to: 16 August 2023
To: General Managers of Banks Greetings,
Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and within the framework of the supervisory and regulatory role exercised by the Central Bank of Libya over banks operating in Libya.
With reference to Circular Letter I.R.M.N. No. (2021/243) dated 15 September 2021, regarding the requirement that no new banking product shall be launched without prior approval from the Central Bank of Libya.
Accordingly, you are requested to complete the attached form regarding the banking product or service intended for launch, and submit it to this Department for review and consideration of approval.
... Respectfully, ...
Naji Muhammad Aissa Director, Banking and Currency Supervision Department
Copy to: The Governor Copy to: Director, Payments and Settlements Department - Central Bank of Libya Copy to: Deputy Director, Banking and Currency Supervision Department for Office Supervision and Compliance Follow-up Copy to: Deputy Director, Banking and Currency Supervision Department for Inspection Copy to: Deputy Director, Banking and Currency Supervision Department for Islamic Banking Affairs Copy to: Heads of Compliance Units in Banks (for follow-up) To the Banking Service Quality Assurance Department Date: 2023
Tel: +218 21 333 3591 - Fax: +218 21 444 1488 - www.cbl.gov.ly - swift code: CBLJLYLX
Central Bank of Libya Banking and Currency Supervision Department Banking Service Quality Assurance Department
Form for Obtaining Approval to Launch a New Product or Service
| No. | Description | Details |
|---|---|---|
| 1 | Product or Service | Name of the product or service |
| Uses of the product or service | ||
| Value added provided by the product or service | ||
| 2 | Target Customer Category for the Product or Service | Individuals <br> Corporate Entities <br> Public [ ] <br> Private [ ] |
| 3 | Pricing of the Product or Service | Pricing |
| Payment terms | ||
| Currency | ||
| 4 | Risk Assessment | Operational risks <br> Mitigation controls |
| Money laundering and terrorism financing risks <br> Mitigation controls | ||
| 5 | Competent Department for Managing the Product or Service | |
| 6 | Outsourcing | Yes [ ] No [ ] <br> If yes, a copy of the contract is attached |
| 7 | Distribution Channels | Service delivery channels |
|---|---|---|
| 8 | Marketing of the Product or Service | Target geographic area for marketing the product or service |
| Expected market coverage ratio | ||
| Advertising channels for the product or service | ||
| Special offers for the product or service | ||
| 9 | Operations | Product or service operation manual |
| Documentation cycle for providing a product or service |
Name: .................................... Title/Position: .................................... Signature: ....................................