Regulatory Alerts2024-12-02
Added · Updated
Central Bank of Libya Circular 20/2024: Guidelines for Issuing Salary-Based Purchase Limits
The Central Bank of Libya issued Circular 20/2024 to authorize banks to offer salary-backed purchase limits as interest-free loans (Qard Hasan) for electronic payments. The regulation mandates that these limits must not exceed 60% of the net salary after deductions, require a minimum six-month salary history, and strictly prohibit any commissions or mandatory additional services. Banks are required to establish internal policies, obtain Shariah board approval, and ensure systems are ready to implement these guidelines in compliance with the specified operational and legal controls.