Central Bank of Libya Circular 8/2017: Conditions for Registration in the Sharia Supervisory Board Observers Register

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

Reference: I.R.M.N / 804

Circular I.R.M.N No. (2017/8) Date: 6 Rajab 1438 AH Corresponding to: April 3, 2017 AD.

To: General Managers of Banks To: Heads of Temporary Administrative Committees in Banks To: General Manager - Libyan Foreign Bank To: General Manager - Transactions Company for Financial Services.

Greetings,

Subject: Conditions for registration in the observers register of Sharia Supervisory Boards in banks and financial institutions.

In implementation of the provisions of Law No. (1) of 2005 concerning Banks, as amended by Law No. (46) of 2012, and in accordance with the supervisory and regulatory role of the Central Bank of Libya under the provisions of the Law.

Based on the provisions of Article One Hundred and one (7/second) of the Banks Law, which stipulates that members of the body are appointed from among those registered in the Observers Register at the Central Bank of Libya, which is prepared, and the rules, conditions, and procedures for registration therein are determined by a decision of the Governor, based on the recommendation of the Central Sharia Supervisory Authority.

And with reference to the decision of the Board of Directors of the Central Bank of Libya No. (6) of 2013 concerning the establishment of the Central Sharia Supervisory Authority.

We inform you of the issuance of the decision of the Governor of the Central Bank of Libya No. (53) of 2017 concerning the conditions for registration in the observers register of Sharia Supervisory Boards in banks and financial institutions subject to the supervision of the Central Bank of Libya, and the controls organizing their work, whereby the Islamic Banking Department of the Banking and Currency Supervision Administration will commence receiving registration applications for the register and referring them to the Central Sharia Supervisory Authority for consideration, after verifying their compliance with all conditions and documents as stipulated in the decision.

And as we refer to you the aforementioned decision and the application form for registration in the observers register of Sharia Supervisory Boards, you are requested to take the necessary measures to implement it, and the concerned entities are to regularize their status in accordance with the controls and conditions prescribed therein, within a maximum period of six months from the date of its issuance, and to provide us with the measures taken in this regard.

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

Dr. Mukhtar Al-Hadi Al-Tawil Director of Banking and Currency Supervision Administration

For Information To the Governor For Information To the Governor's Advisor for Islamic Banking Affairs For Information To the Chairman of the Central Sharia Supervisory Committee - Central Bank of Libya For Information To the Chairman of the Advisory Committee for Islamic Banking Affairs - Central Bank of Libya For Information To the Chairmen of Boards of Directors in Banks For Information To the Chairmen of Sharia Supervisory Boards in Banks and Financial Institutions operating For Information To the Director of the Legal Affairs Department - Central Bank of Libya For Information To the Managers of Central Bank of Libya Branches (Benghazi - Sabha - Sirte) For Information To the Deputy Director of the Banking and Currency Supervision Administration for Follow-up and Compliance Affairs For Information To the Deputy Director of the Banking and Currency Supervision Administration for Internal Supervision, Policies, and Legislation Affairs For Information To the Deputy Director of the Banking and Currency Supervision Administration for Islamic Banking Affairs For Information To the Managers of Central Bank of Libya Branches (Benghazi - Sabha - Sirte) For Information To the General Managers of Specialized Banks (Agricultural - Development - Savings and Real Estate Investment) For Information To the Managers of Departments and Units in Banks (Internal Audit, Sharia Audit, Compliance) Follow-up. For Information To the Islamic Banking Department T in V / I / 2017 AD - Faisal

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

53 Decision of the Governor of the Central Bank of Libya No. (53) of 2017 Concerning the conditions for registration in the observers register of Sharia Supervisory Boards and the controls organizing their work

Governor of the Central Bank of Libya

After reviewing the Constitutional Declaration issued by the National Transitional Council on 3 Ramadan 1432, corresponding to 03/08/2011, and its amendments. And on Law No. (1) of 2005, concerning Banks, and its amendment. And on the decision of the Board of Directors of the Central Bank of Libya No. (6) of 2013, concerning the Central Sharia Supervisory Authority. And on the decisions of the Board of Directors of the Central Bank of Libya No. (26) of 2013, and (217) of 2014, concerning the formation of the Central Sharia Supervisory Authority and the appointment of its members. And on what the Central Sharia Supervisory Authority recommended in its ninth meeting held on 29/06/1435 AH corresponding to 29/April/2014 AD, and what it approved of amendments in its twelfth meeting of 2016.

Decided

Article One Conditions for Registration

The following conditions are required of the applicant for registration in the Observers Register referred to in Article (100 one/7) of the Banks Law and its amendments:

1- He must be a Muslim possessing full legal capacity. 2- He must hold a university degree in Sharia Sciences, Private Law, or Islamic Economics, or its equivalent from one of the recognized educational institutions. 3- The Sharia expert member must have experience in Fiqh of Transactions and Private Law of no less than three years for PhD holders, five years for Master's degree holders, and ten years for university degree holders or their equivalent. It is required that the financial member be registered in the Auditors Register at the Central Bank of Libya.

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

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Article Four Deletion from Registration

A registered person shall be deleted from the Observers Register in the following cases: 1- Death of the registered person. 2- Expiration of the registration period without submitting a written renewal request. 3- Proof of forgery in the documents submitted by the registered person, or proof of their falsity. 4- A decision issued by the Central Sharia Supervisory Authority by a two-thirds majority based on the registered person's negligence in performing his duties and responsibilities, or committing acts that tarnish the profession, or violating the observers' code of conduct.

Article Five Controls for the Formation of Sharia Supervisory Boards

Banks and Islamic financial institutions subject to the supervision and regulation of the Central Bank of Libya must adhere to the following when selecting members of the Sharia Supervisory Board: 1- All members must be among those registered in the Observers Register at the Central Bank of Libya. 2- The number of board members must not be less than three Sharia scholars specializing in Sharia Sciences, and one of them may be a specialist in Private Law or Islamic Economics. 3- The majority of the board members must hold Libyan nationality. 4- The Chairman of the Board must hold Libyan nationality. 5- The candidate must not be a member of a Sharia supervisory board for another local bank, except in cases authorized by the Governor of the Central Bank of Libya upon submission of a specific written request. 6- The candidate must not be an employee in a local bank, or a member of its board of directors, or its supervisory committee, or a shareholder therein with a percentage of (5%) or more. 7- The appointment of the board must be issued by a resolution of the General Assembly. 8- The Governor of the Central Bank of Libya must be notified of the appointment of the board members and all data related to them within a maximum of two weeks from the date of the appointment decision, and the Governor has the right to object to the appointment based on a recommendation from the Central Sharia Supervisory Authority - within two weeks from the date of receiving the notification.

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

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Article Six Entry into Force and Implementation

This decision shall be implemented from the date of its issuance, and its provisions shall apply to the Sharia bodies in banks and Islamic financial institutions subject to the supervision and regulation of the Central Bank of Libya at the time of its issuance, and all concerned entities are to regularize their status in accordance with the conditions and controls prescribed in this decision, within a maximum period of six months from the date of its issuance.

Al-Sadiq Omar Al-Kabir Governor

Issued on 13/12/2017.

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Application Form for Registration in the Observers Register of Sharia Supervisory Boards

6*4 Photo	Personal Data
	Full Name: .................................................... Surname: ....................................................
	Date of Birth: .................................................... Place of Birth: ....................................................
	Nationality: .................................................... National ID Number ....................................................
	Personal ID/Passport Number: .................................................... Date and Place of Issue: .................................................... /

Educational Qualification: (1) .................................................................... Source: .................................................... Date Obtained: .................................................... (2) .................................................................... Source: .................................................... Date Obtained: .................................................... (3) .................................................................... Source: .................................................... Date Obtained: ....................................................

Certificate(s) of Experience: (1) .................................................................... Institution and Date: .................................................... (2) .................................................................... Institution and Date: .................................................... (3) .................................................................... Institution and Date: ....................................................

References: (1) .................................................................................................................................................... (2) ....................................................................................................................................................

I submit this application hoping for approval of my registration in the Sharia Observers Register, and I pledge to perform my duties to the best of my ability and to comply with what the Central Bank of Libya prescribes.

Signature of Applicant .................................................... Date ....................................................

Decision of the Central Sharia Supervisory Authority: .................................................................................................................................................................... .................................................................................................................................................................... ....................................................................................................................................................................

Approval of the Chairman of the Central Sharia Supervisory Authority: .................................................................................................................................................................... ....................................................................................................................................................................

Stamp .................................................... Date of Approval: ....................................................