Regulatory Alerts2023-07-12
Circular No. 2/2016
The Central Bank of Libya issued Circular No. 2/2016 to establish a regulatory mechanism for opening and supervising Letters of Credit, addressing operational deficiencies and preventing fund smuggling. The circular mandates commercial banks to designate specific branches for Letter of Credit services, link them to the unified banking system, and enforce strict internal audit and accountability procedures throughout the issuance process. It further requires banks to ensure that imported goods match transferred funds in value and pricing, thereby aligning foreign currency usage with actual trade flows.
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