Central Bank of Libya Circular No. 5/2016 on Fast Remittances and Electronic Bank Cards

Central Bank of Libya
P.O. Box 1103 | Telegram Address: Masaribya - Tripoli, Libya

Ref: M/N 804
Circular No. M/N (2016/5)
Date: 5 Rajab 1437 AH
Corresponding to: 12 April 2016 AD

To: The General Managers of Commercial Banks
The Heads of the Interim Administrative Committees of Commercial Banks The General Manager - Libyan Foreign Exchange The Director of Ma'amalat Financial Services Company

With greetings,

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

And with reference to Circular No. M/N (2015/1) issued on 11/1/2015, regarding clarifying banks' inquiries related to Circular No. N (5) of 2014, concerning the regulation of bank card transactions.

And with reference to Circular Letter No. M/N (128) of 2015 issued on 29/11/2015, concerning the regulations governing fast remittance activities for personal purposes.

And to the outcomes of the meeting held on Wednesday, 10/2/2016, between the Director of the Payments and Settlements Department at the Central Bank of Libya and commercial banks, regarding discussing the establishment of regulations for the banking electronic system related to fast remittances and electronic bank cards.

In the context of the Central Bank of Libya's commitment to monitoring and developing regulations for fast remittances (MoneyGram, Western Union) and electronic bank cards, monitoring foreign exchange operations, organizing and rationalizing commercial banks' requests to activate related obligations, and ensuring all societal segments benefit from their use, the Central Bank of Libya confirms the necessity to adhere to and comply with all instructions governing these activities. In this regard, you are requested to comply with the following:

1- Each bank must designate the branches it wishes to allocate for providing fast remittance services (MoneyGram, Western Union) and connect them to the foreign exchange system at the Central Bank of Libya, ensuring geographical distribution across all regions in Libya is considered, and submitting a list thereof to the Banking and Currency Supervision Department.

2- Utilize the individual foreign exchange monitoring system to inquire about an individual's remaining annual limit for cards and fast remittances by entering the national ID number along with a valid copy of the passport, and verifying customer details including name and date of birth.

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P.O. Box 1103 | Telegram Address: Masaribya - Tripoli, Libya

3- No recharge remittance for any prepaid card, direct debit card issuance, or credit card issuance shall be processed except after entering the data and reserving the value in the foreign exchange monitoring system.

4- No foreign exchange transaction not registered in the system will be covered, and in case of non-compliance, all coverages for the violating bank will be suspended.

5- No fast remittance or international card issuance shall be processed for foreigners, and the execution of these transactions is restricted to Libyan citizens only.

6- Regarding the annual foreign exchange limit for Libyan citizens for cards and fast remittances, it is jointly defined and automatically set by the system. Banks have the authority to determine the card value and number of remittances, provided they do not exceed the limit set by the system.

7- Fast remittance transactions will not be covered until the following data are completed and attached to the coverage request:

• Report of remittances executed in the transfer system (MoneyGram, Western Union) based on the TRANSACTION REPORT (PDF) system, with an electronic copy of the report also sent.
• Report from the foreign exchange monitoring system regarding remittances whose details were entered in this system, with an electronic copy submitted.
• Cards will not be covered until the following data are completed and attached to the coverage request:
• Settlement report with the company (Visa or MasterCard) for the coverage period, with an electronic copy of this report and an electronic report of all card transactions submitted.
• Report from the foreign exchange monitoring system regarding cards whose details (recharge/issuance) were submitted in the system during the required coverage period.

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

"Abdelhafidh Masoud Tuifel"
Director of the Banking and Currency Supervision Department / Authorized

Copies to: The Governor
Copies to: The Head of the Committee for Covering Commercial Banks' Accounts with Foreign Correspondents Copies to: The Director of the Accounts Department Copies to: The Director of the Payments and Settlements Department Copies to: The Director of the Information Security Department Copies to: The Director of the Media Office Copies to: The Banking Monitoring and Compliance Supervision Department

Majra / Arusa * 1/Circular www.cbl.gov.ly, SWIFT Code: CBLJLYLX, Fax: +218 21 444 1488, Tel: +218 21 333 3591