LogoRegulatory Alerts
2024-06-24

Circular No. 12 of 2024: Guidelines on SMS-Based Payment Services

The Central Bank of Libya issues Circular No. 12 of 2024 to establish comprehensive regulatory guidelines for SMS-based payment services across licensed financial institutions and mobile network operators. The circular mandates strict technical interoperability, multi-factor authentication, defined transaction limits, and standardized agent network operations to ensure system security and consumer protection. It further requires monthly regulatory reporting, grants a six-month compliance transition period for existing providers, and establishes administrative penalties for non-compliance.

Central Bank of Libya logo

Libya

Central Bank of Libya

Click to view thumbnail

www.cbl.gov.ly, swift code: CBLJLYLX, +218 214441488, +218 213333591

Circular No. 12 of 2024 Guidelines on SMS-Based Payment Services

The Central Bank of Libya hereby issues these guidelines to regulate and standardize the operation of SMS payment services within the national payment system.

  1. Scope and Application: These guidelines apply to all licensed financial institutions, payment service providers, and mobile network operators offering SMS-based payment solutions in Libya.
  2. Definitions: "SMS Payment Service" refers to the electronic transfer of funds initiated via short message service between customers, merchants, and registered agents. "Licensed Entity" means any institution authorized by the Central Bank to operate payment services.
  3. Licensing and Registration: All entities providing SMS payment services must obtain prior approval from the Central Bank and comply with the prescribed technical specifications and operational standards.
  4. Technical Requirements: Service providers must implement secure SMS gateways, ensure interoperability with existing payment networks, and maintain system availability of at least 99.5 percent.
  5. Security and Fraud Prevention: Entities must implement multi-factor authentication, enforce per-user and daily transaction limits, deploy real-time fraud monitoring systems, and maintain clear dispute resolution procedures.
  6. Agent Network Obligations: Licensed agents must be properly registered, display transparent fee schedules, and ensure adequate cash liquidity to support continuous customer transactions.
  7. Reporting and Supervision: Payment service providers shall submit monthly operational reports, incident logs, and independent audit certificates to the Central Bank within fifteen (15) days following each month-end.
  8. Effective Date and Transition: These guidelines take effect upon publication. Existing service providers are granted a six-month transition period to achieve full compliance, after which non-compliant entities may be subject to administrative penalties as determined by the Central Bank.

Issued in Tripoli, 2024/613 Central Bank of Libya

Share