Central Bank of Libya Periodic Letter No. 15/2017 on Regulations for Opening Accounts of Public Entities in Banks

Central Bank of Libya
P.O. Box 1103, Telegraph Address: Central Bank of Libya - Tripoli - Libya (265) Reference: /N 804 Periodic Letter No. 15/2017 Date: 21 Rabi' al-Thani 1438 AH Corresponding Date: January 19, 2017 AD

To the General Managers of Commercial Banks,
To the Heads of Temporary Administrative Committees at Commercial Banks, To the General Manager - Libyan External Bank

With greetings,

Subject: Regulations for Opening Accounts of Public Entities in Banks

Based on the provisions of Law No. (1) of 2005 regarding Banks, and its amendments, and on the supervisory and regulatory role of the Central Bank of Libya under the provisions of the Law, which stipulated in Article (3/9) that "the Central Bank of Libya may, with the approval of the Ministry of Finance, entrust commercial banks with maintaining balances of accounts for public administrative units and providing banking services to them, within the limits and conditions approved by the Board of Directors."

And with reference to Circular No. 13/2009 issued on December 1, 2009, which was forwarded to you along with the decision of the Board of Directors of the Central Bank of Libya No. (36) of 2009 regarding the rules governing the opening of bank accounts in commercial banks, which stipulated in Articles (Fifth, Sixth) that banks may choose the authority to open accounts for public entities, subject to obtaining approval from the Ministry of Finance.

And with reference to Periodic Letter No. 170/2016 issued on November 10, 2016, regarding the confirmation of regulations for opening accounts of public entities in banks.

And since the Central Bank of Libya has noted that some banks have opened special bank accounts for public entities without prior approval from the Ministry of Finance, in violation of the provisions of prevailing legislation under the State Financial Law and the Banks Law.

Therefore, you are requested to comply with the instructions mentioned above, and not to open any accounts in the future unless they are covered by Ministry of Finance approval. All bank branches will be subject to periodic inspection tasks to ensure compliance with the prevailing regulations, and in case non-compliance is found, the stipulated penalties under prevailing legislation will be applied.

And by virtue of these instructions, Periodic Letter No. 170 of 2016 mentioned above is considered repealed.

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

Abdulhafid Mahmoud Trebil
Deputy Manager of the Banking Supervision and Contracts Department Office Supervision and Compliance Follow-up Affairs

To: Mr. Al-Jajth
Mr. Wahid Marwan Al-Mohassia
Mr. Wahid, Financial Supervision
Directors of the Office of the Head of the Administrative Control Authority Manager, Banking Supervision and Customs & Narcotics Department, Central Bank of Libya Manager, Legal Affairs Department, Central Bank of Libya Manager, Banking Operations Department, Central Bank of Libya Branches: Central Bank of Libya branches (Benghazi - Sabha - Sirte) Deputy Manager, Banking Supervision and Customs & Narcotics Department, Central Bank of Libya Deputy Manager, Banking Supervision and Customs & Narcotics Department, Central Bank of Libya Compliance Unit at the Apparatus (Follow-up) Banking Follow-up and Compliance Supervision Department

Q.M. 17/1/J www.cbl.gov.ly, swift code:CBLJLYLX , +218 21 444 7468 : Fax, +218 21 333 3591 : Phone