Central Bank of Libya Circular 10/2012 on Regulations for Settling Documents Received for Collection

Central Bank of Libya
P.O. Box: 1103, Al-Adwan Al-Barqi, Egypt Street, Libya - Tripoli

Reference: M.N./804
Noted (R.M. No.) (2012/10)
Date: 5 Jumada al-Awwal 1433 H.
Corresponding: March 28, 2012 A.D.

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To: General Managers of Commercial Banks
To: Heads of Interim Administrative Committees at Commercial Banks To: Governor, Libyan Foreign Bank

With greetings...
Subject: Regulations Governing the Settlement of Documents Received for Collection.

Based on the provisions of Law No. (1) of 2005 regarding Banks, and in reference to our circular letter No. (2011/146) communicated to all banks on October 17, 2011, regarding the confirmation of the necessity to proceed with accepting applications for opening bank letters of credit for import purposes, within the framework of priorities defined for imports by the Economic Affairs Department of the Executive Office of the National Transitional Council.

We hereby inform you of the approval of the Governor of the Central Bank of Libya for commercial banks to resume adjudicating the settlement of documents received by them for collection, in accordance with standard banking procedures and practices in this regard, without referring back to the Central Bank of Libya for approval, and we emphasize the necessity of taking appropriate measures and procedures to limit potential forgery arising from banks' circulation of documents for collection, and adhering to the controls set forth below:

1. Acceptance of documents for collection through the beneficiary's bank abroad, and documents submitted directly by suppliers are not considered.

2. The necessity to verify that the documents requiring settlement have not been previously paid for.

3. Submission of original customs declarations, stamped with a thermal seal, indicating that goods entered through Libyan customs ports.

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4. Supplying entities are obligated, when using documents for collection, to provide the statistical code card issued by Customs, among the documents submitted to the bank.

5. Verification of the validity of documents pertaining to the requesting entity, in accordance with instructions issued by the Central Bank of Libya specifically, in case an account is opened for the supplying entity for the first time at the bank.

6. Submission of a monthly statement to the Banking and Currency Control Department, on a compact disc (CD), containing names of supplying entities under documents for collection, and the volume and purpose of documents being settled at banks for this purpose, according to tracking.

And in confirmation of the necessity to comply with instructions issued by the Central Bank of Libya on this matter, all bank branches will be subjected to periodic inspection procedures to verify their compliance with the application of instructions governing imports via documents received for collection, in implementation of Law No. (1) of 2005 regarding Banks.

Peace, mercy of Allah, and blessings be upon you...

Dr. Mohamed Abduljalil Abousnina
Director, Banking and Currency Control Department

To: Deputy Governor
To: Undersecretary of the Ministry of Economy and Trade To: Undersecretary of the Ministry of Finance To: Undersecretary of the Court of Accounts To: General Manager, Customs Station To: Secretary, Executive Committee of the General Union of Chambers of Commerce and Industry To: Director, Legal Affairs Department, Central Bank of Libya To: Director, Competitions Department, Central Bank of Libya To: General Managers of Central Bank of Libya Branches (Benghazi, Sabha, Sirte) To: Embassies and Residences

Eng. Abdulmajid
3/4/2012 A.D.

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www.cbl.gov.ly, swift code: CBLJLYLX, Fax: +218 21 444 1488, Phone: +218 21 3333591