Central Bank of Libya

P.O. Box 1103 Telegram Address: Misrifya - Tripoli - Libya

Reference: 1 M/N 804

Circular No. (2013/1)

Date: 21 Safar 1434 AH
Corresponding to: 02 January 2013 AD

To: General Managers of Commercial Banks
To: Heads of Interim Administrative Committees of Commercial Banks To: General Manager - Libyan External Bank To: General Manager - Saraka and Financial Services Company

In the Name of Allah, the Most Gracious, the Most Merciful

Based on the provisions of Law No. (1) of 2005 concerning Banks, and its amendments.

With reference to Circular No. (2002/6) issued on 10/02/2005, concerning controls related to the use of external transfers.

With reference to Circular No. (2007/12), and Circular No. (2012/7) concerning the policy on combating money laundering and financing of terrorism and due diligence towards customers.

With reference to Circular No. (2008/3) issued on 16/01/2008, concerning the controls regulating the implementation of external transfers for residents and non-residents.

With reference to our periodic letter No. (2011/178) dated 22/11/2011, concerning controls on the sale of foreign currency to the public, and our periodic letter No. (2011/190) dated 06/12/2011, concerning the regulation of the sale of foreign currency to citizens.

With reference to our periodic letter No. (2012/76) dated 12/03/2012, concerning raising the cap on the sale of foreign currency for personal purposes.

With reference to Circular No. (2012/10) issued on 28/03/2012, concerning the controls regulating the settlement of the value of documents presented for collection.

With reference to Circular No. (2012/16) issued on 03/07/2012, which referred the decision of the Board of Directors of the Central Bank of Libya No. (7) of 2012 concerning free transfers.

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Central Bank of Libya

P.O. Box 1103 Telegram Address: Misrifya - Tripoli - Libya

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With reference to Circular No. (2012/17) issued on 07/08/2012, concerning suspending external transfers for commercial purposes and continuing to finance the import of raw materials and operational supplies for industrial entities.

With reference to Circular No. (2012/19) issued on 13/11/2012, concerning regulating direct external transfers for industrial purposes.

And in order to achieve stability in the foreign exchange market, and to ensure facilitating the provision of banking services and accelerating their pace, and enabling banks to perform their full duties, and achieving the public interest.

We inform you of the issuance of the decision of the Governor of the Central Bank of Libya No. (1) of 2013, concerning the regulation of dealing in foreign currency and determining the authorities for implementing external transfers for various purposes.

And as we convey to you the decision of the Governor of the Central Bank of Libya No. (1) of 2013, referred to above, it is requested to implement what is stated therein, and to place the subject of implementation, and to commit to referring a statistical report to the Banking and Currency Supervision Department, regarding the transactions implemented for various purposes included in the Decision.

Dr. Mohamed Abdul Jalil Abousnina
Director of Banking and Currency Supervision Department

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Copy to: The Governor
Copy to: The Deputy Governor
Copy to: The Deputy Auditor General
Copy to: The Deputy Minister of Economy
Copy to: The Deputy Minister of Finance
Copy to: The Deputy Minister of Industry
Copy to: The General Manager of the Customs Region Copy to: The President of the Chamber of Commerce and Industry Union Copy to: The Director of the Central Banking Operations Sector – Central Bank of Libya Copy to: The Director of the Contests Administration – Central Bank of Libya Copy to: The Director of the Audit Administration – Central Bank of Libya Copy to: The Director of Research and Statistics Administration – Central Bank of Libya Copy to: The Director of Legal Affairs Administration – Central Bank of Libya Copy to: The Director of Banking Operations Administration – Central Bank of Libya Copy to: The Director of Reserves Administration – Central Bank of Libya Copy to: The Deanship / Managers of Central Bank of Libya branches (Benghazi, Sabha, Sirte)

www.cbl.gov.ly swift code:CBLJLYLX +218 21 444 1488 : Fax +218 21 333 3591 : Phone

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Central Bank of Libya

P.O. Box 1103 Telegram Address: Misrifya - Tripoli - Libya

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Decision of the Governor of the Central Bank of Libya No. (1) of 2013

Concerning the regulation of dealing in foreign currency and determining the authorities for implementing external transfers for various purposes

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The Governor

• After reviewing Law No. (1) of 2005 concerning Banks, amended by Law No. (46) of 2012, issued by the National Transitional Council.
• And the administrative organization of the Central Bank of Libya and its service regulation.
• And the memorandum of the Banking Supervision Administration regarding the proposal to transfer to commercial banks the authorities to conduct external transfers for beneficial personal (non-commercial) purposes.
• And what the competent Crisis Management Committee, which monitors the situation of banks, concluded in its meeting held on 26/12/2012.
• And after taking the opinion of the Deputy Governor.

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It was decided

Article (1)

Commercial banks are transferred the authorities to approve the implementation of external transfers for public legal entities, in consideration for settling obligations related to the supply of services from abroad, including technical support expenses, assistance and technical consulting, training expenses, membership fees in international bodies and subscriptions in global and regional organizations, fees for subscriptions in conferences and scientific forums, books and scientific journals, insurance services and maintenance expenses and services related to them, and other services supplied from abroad. Banks are also transferred the authorities to implement external transfers related to their activities and necessary to facilitate their work.

Banks are obliged, in implementing transfers for public legal entities, to adhere to the following controls:

1. The public entity must manage an account with the designated bank, and the transfer must be debited from the account.
2. Submission of approval from the competent Minister for public administrative units and public sector companies.
3. The maximum limit allowed to be transferred, per single transfer, is ($100,000.00) one hundred thousand dollars or its equivalent in other foreign currencies.
4. The transfer request is submitted to the bank via a letter issued by the entity, signed by authorized signatories, containing the amount to be transferred, the beneficiary entity abroad, and the bank account number of the beneficiary entity abroad.

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-5 The original claims (invoices) and documents indicating the purpose of the transfer must be attached to the request, such that the claims are signed by authorized signatories of the requesting entity, and the claims (invoices) are recent and valid.

-6 If the transfer is for the purpose of settling services provided under contracts or agreements, the original contract or agreement concluded for this purpose must be attached to the request, and it must meet the requirements according to prevailing legislation.

-7 The entity is obliged to submit a request to conduct an external transfer according to Form No. M/N (2008/3) in Circular No. M/N (2008/3).

-8 The value of the requested transfer must be covered at 100% by debiting the bank account of the entity.

-9 If the amount to be transferred exceeds ($100,000.00) one hundred thousand dollars or its equivalent in foreign currencies, the bank is obliged to open a letter of credit for the requested purpose, according to banking conventions in this regard.

Article (2):

Commercial banks are granted the authorities to implement external transfers for the purpose of financing the import of agricultural supplies and equipment, IT equipment, computer supplies, medicines and medical supplies, for commercial purposes submitted by specialized companies in these fields, according to the following conditions:

1. The transfer request is submitted according to Form No. M/N (2008/3) in Circular No. M/N (2008/3), and a commercial claim (invoice) indicating the prices, types of goods, and quantities to be supplied is attached to the transfer request. These claims (invoices) must be endorsed by the local supplying company.

2. The transfer is covered at 100% in Libyan Dinars by debiting the account managed by the entity with the concerned bank.

3. The supplying entity is obliged to provide the activity license issued by the Ministry of Economy and the statistical code card issued by the Customs Authority as part of the documents required to be submitted to the bank, such that they are valid on the date of submitting the external transfer request.

4. Banks are obliged to adhere to the cap specified for these transfers, not exceeding ($100,000.00) one hundred thousand dollars per single transfer at a time, and not exceeding ($250,000.00) two hundred and fifty thousand dollars per year. If the value to be transferred exceeds the maximum allowed limit for the transfer, the entity is directed to open a letter of credit for the supply of the required goods, according to prevailing banking procedures.

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

5. The supplying entity is obliged to provide the customs declaration indicating the supply of the required equipment and goods within the period specified by the prevailing instructions issued by the Central Bank of Libya. These entities must provide a notarized commitment committing to supply the goods to Libya and provide the customs declaration indicating this within the specified time. Banks must take into account any instructions issued by the Central Bank of Libya or any other competent authorities, which may have been issued regarding suspending banking transactions for that entity.

Article (3)
Commercial banks are granted the authorities to decide on requests to purchase and transfer foreign currency for personal purposes for natural persons according to the following:

• The maximum limit allowed to be transferred per person annually is fifteen thousand dollars, or its equivalent in foreign currencies, for various purposes, provided that the transfer request manages a bank account with the concerned bank, and that at least six months have passed since their dealings with the bank at the date of submitting the request.

• The transfer request is submitted with documents indicating the purpose of the transfer (claims or invoices), such that they are recent and valid on the date of submitting the request. The purposes of the transfer include treatment at private expense, studying abroad, fees for subscriptions in conferences and international bodies, subscriptions in scientific journals, Hajj and Umrah purposes, and settling obligations abroad.

• It is required that the beneficiary entity has a specified address, and that the transfer is to the private bank account of the beneficiary entity abroad.

• The transfer request is submitted using Form No. (2002/2) amended and attached to Circular (2002/6).

• The coverage of the required transfer in Libyan Dinars is at 100% by debiting the bank account of the transfer applicant.

Article (4):
The Banking and Currency Supervision Administration is granted the authorities to decide on requests to purchase and transfer foreign currency submitted by private legal entities, according to the following controls:

• The maximum limit for the transfer implemented for the purpose of financing transfers for private legal entities, for various purposes (non-commercial goods import) to settle obligations arising from their activity and in consideration for the supply of services from abroad or settling the value of operational supplies or subscription fees abroad, or providing services abroad, is ($100,000.0) one hundred thousand dollars per single transfer or group of transfers per year.

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Central Bank of Libya

P.O. Box 1103 Telegram Address: Misrifya - Tripoli - Libya

• If the amount to be transferred exceeds ($100,000.00) one hundred thousand dollars, the entity is obliged to open a letter of credit through the bank holding its account, according to prevailing banking procedures.
• It is required for the purpose of approving the implementation of this type of transfer that the entity manages a bank account, and that at least six months have passed since their dealings with the bank.
• The transfer request is submitted, through the bank holding the current account of the requesting entity, using the form prepared for this purpose, and documents supporting the transfer request and claims (invoices) indicating the purpose of the transfer, its value, and the account of the beneficiary entity abroad must be attached to the request.
• It is required that the beneficiary entity abroad has a clear address and a bank account at a bank abroad, the details of which are provided in the transfer request.
• The executing bank is obliged, after approval is issued, to adhere to the controls organizing Know Your Customer (KYC) policies, anti-money laundering policies, and due diligence towards customers according to instructions issued by the Central Bank of Libya pursuant to Circular No. 1 M/N (2007/12) and Circular 1 M/N (2012/7) concerning the policy on combating money laundering and financing of terrorism and due diligence towards customers.
• The entity conducting the transfer is obliged to provide the customs declaration to the executing bank, in the case of transferring for the supply of operational supplies, within the specified deadlines, according to instructions issued by the Central Bank of Libya. These entities must commit to providing a notarized commitment committing to supply the supplies to Libya and provide the customs declaration indicating this. Banks must take into account any instructions issued by the Central Bank of Libya, or any other competent authorities, to suspend banking transactions for these entities, if any.

Article (5):

1. The cap on the sale of foreign currency pursuant to prepaid cards, or by debiting the current account, issued by Libyan banks is raised to ($15,000.00) fifteen thousand dollars.
2. All banks are requested to enhance the documents presented for collection to commercial banks for payment, via correspondents, with a SWIFT letter issued by the correspondent bank, confirming the sending of the documents.

Article (6):

This Decision is implemented from the date of its issuance, and the Banking and Currency Supervision Department is to place it subject to implementation.

Al-Sadeeq Omar Al-Kabir
The Governor

Issued on: 2013/1/1 AD

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