Central Bank of Libya

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

Reference: M.M. / N 804
Circular No. (2023/11)
Date: 02 Rabi' al-Thani 1444 AH
Corresponding to: 22 February 2023

To: General Managers of Banks (Al-Nour Bank - First Libyan Gulf Bank - Al-Sahari Bank)

Greetings,

Subject: Regulations Governing Direct Foreign Remittance Procedures for the Import of Manufactured Gold Goods

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and on the supervisory and regulatory role exercised by the Central Bank of Libya over banks in accordance with the provisions of the Law.

We hereby notify you of the instructions of the Central Bank of Libya regarding the regulations governing direct foreign remittance procedures for the import of gold goods, as follows:

1. Banks are granted the authority to decide on requests to accept direct foreign remittances for the import of gold and its legally permitted requirements, provided that a valid banking code (CBLKEY) is available, and that the company has previously obtained the banking code (CBLKEY) for a period of no less than two years.

2. The import of gold under this mechanism is limited to manufactured gold, and the value of its import operations via direct remittances is covered from the Libyan bank's account with its correspondents, which are (Arab Banking Corporation (ABC)) – Union of Arab and European Banks ((UBAE)) – Arab Turkish Bank ((ATBANK)) – Arab Bank for Credit and Foreign Trade ((ARBFIT)), to the exporting company's account with the same correspondent.

3. The bank must study the submitted request and subject it to review and audit by the competent departments (Compliance – Due Diligence – Internal Audit – and Risks), and exercise due diligence to verify the correctness of the data related to the entity requesting the direct remittance, and ensure there are no reasons preventing continued dealings with it before proceeding with the remittance procedures. In case of approval, the company deposits the full amount corresponding to the invoice value in Libyan Dinars, including all fees and currencies collected by the bank.

4. The purchase of foreign currency to cover the direct remittance shall not be requested except after obtaining preliminary approval through the coverage system at the Central Bank of Libya.

(2)

5. The upper limit for the value of the direct remittance for importing manufactured gold is twelve million (12,000,000) US dollars or its equivalent in other currencies. The value of the direct remittance for importing manufactured gold may be split into the aforementioned amount, provided that the ceiling for each company is fifteen million (15,000,000) US dollars annually or its equivalent in other currencies as a maximum.

6. The initial invoice must include all data related to the description, weight, quantity, and price. The beneficiary entity abroad must be in the same country from which the initial invoice was issued.

7. The invoice value must be fully covered by the available balance in the account at the time of requesting approval for the foreign remittance, with the company depositing an additional amount equal to 7% of the total invoice value with the bank as a guarantee for the company's execution and commitment to provide all required documents and papers to settle the shipment. In case the company fails to comply with this, the guarantee amount shall be forfeited in favor of the Central Bank of Libya, and legal measures shall be taken against the violating company.

8. Banks are committed to exercising due diligence regarding the conformity of the data in the invoice with the inspection certificate and the export declaration from the exporting country, with the violator bearing legal responsibility.

General Regulations:

1. Adherence to and compliance with the anti-money laundering and counter-terrorism financing regulations stipulated in Law No. (2017/1013).

2. Suppliers are committed to providing original customs declarations indicating that the supplied goods entered Libya only through air ports. The customs declarations must be submitted to the banks along with the final sales contract and the attached form within a period not exceeding one month from the execution of the remittance.

3. Each company is restricted to dealing with only one bank in its transactions.

4. When the customer determines the date to complete the purchase and confirms the readiness of the goods via a message from the exporting company, the customer notifies the bank via an official letter to transfer the value at the correspondent to the exporting company's account with the same correspondent, and notifies the customer of the transfer process immediately to complete the contracting and delivery of the goods at the same time.

5. The customer (the supplying company) bears full responsibility for any suspicions, analyses, evasion, or money laundering suspicions under a notarized undertaking with a certified contract drafter.

(3)

6. A new import approval is not granted to the company until all documents of the previous shipment are referred to, uploaded to the coverage system, and settlement approval is obtained. These documents are (copies of travel tickets and boarding passes, gold purchase contract, gold certification certificate, export declaration from the exporting country of the goods, inspection certificate issued by the inspection company, professional customs declaration, Chamber of Commerce or Industry of the exporting company, certificate of origin). These must be uploaded after the completion of procedures, not exceeding a period of (one) month from the date of approval by the Accounts Department for the remittance. This is a condition for approving the refund of the guarantee value and approval for any new import process.

Therefore... you are requested to take the necessary measures to implement the aforementioned regulations.

Peace be upon you,

Taj Muhammad Isa
Director of Banking and Currency Supervision Department

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// Copy to //
Mr. / The Governor
Mr. / Director General of Customs Service
Mr. / Director of Audit Department – Central Bank of Libya Mr. / Director of Legal Department – Central Bank of Libya Mr. / Director of Information Department – Central Bank of Libya Mr. / Director of Financial Environmental Information Implementation Department – Central Bank of Libya Mr. / Director of Information Unit – Central Bank of Libya Mr. / Director of Compliance Department – Central Bank of Libya Mr. / Director of Libyan Communications Information Center – Central Bank of Libya Mr. / Deputy Director of Banking and Currency Supervision Department for Office Supervision and Compliance Follow-up Mr. / Deputy Director of Banking and Currency Supervision Department for Inspection Affairs Mr. / Deputy Director of Banking and Currency Supervision Department for Islamic Health Affairs Responsible / Visual Supervision Benghazi For visual supervision and control of the compliance category Butcher / Message