Regulatory Alerts2022-06-06
Law No. 1 of 2013 Regarding the Prevention of Riba Transactions
Issued by the General National Congress of Libya, this law prohibits all interest-based transactions between natural and legal persons, declaring any such interest absolutely void. It establishes the 'Qard Hasan' Fund to facilitate interest-free lending under the supervision of the Central Bank of Libya and mandates that all civil, commercial, and banking dealings comply fully with Islamic Sharia. The legislation imposes imprisonment and fines for violations, with enhanced penalties for exploitation, and sets a phased implementation timeline for legal entities starting in 2015.
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