Central Bank of Libya Publication No. 22/2023 on IFRS9 and AAOIFI Standard 30 Implementation

Central Bank of Libya
P.O. Box 1103, Telegraph Address: CBL - Tripoli - Libya

Reference: M.R.B.J.N 804

Publication: A.R.M No. (22 / 2023)
Date: 23 Dhu al-Hijjah 1444
Corresponding to: July 11, 2023

To: Board Chairmen and General Managers of Banks To: Board Chairmen and General Managers of Specialized Banks

Subject/Preparation for Applying International Financial Reporting Standard No. IFRS9 and AAOIFI Standard (30)

Based on the provisions of Law No. (1) of 2005 and its amendments, and in fulfillment of the Central Bank of Libya's supervisory and oversight role, within the framework of the Central Bank's transition to risk-based regulations in accordance with Basel 3, and with the Central Bank's commitment to supporting and strengthening the financial stability of banks operating in Libya, deepening disclosure and transparency principles toward international best practices, and applying the latest International Financial Reporting Standards (IFRS 9) and Accounting Standard No. 30 issued by AAOIFI.

And based on the Governor's Decision No. (158) of 2023, issued on June 14, 2023, which established a committee to monitor the implementation of International Financial Reporting Standard No. (9) and AAOIFI Standard No. (30).

Therefore, you are requested to:

1. Form a committee by August 31, 2023, to develop an implementation plan for the aforementioned standards, assess the implementation process, and submit its formation decision to the Banks and Currency Control Department. The committee shall define a timeframe for implementation, provide all necessary technical and human resources, and banks may engage experts and consultants to assist in completing tasks.
2. Submit an approved plan, endorsed by the bank's Board of Directors, to the Banks and Currency Control Department by September 30, 2023. The plan must include a work program for implementing the aforementioned standards and be accompanied by monthly progress reports, covering the following phases:
   • Pilot compliance phase: Preparing interim financial statements according to the standards as of December 31, 2023.
   • Final compliance phase: Preparing final financial statements according to the standards as of December 31, 2024.
3. The bank's Board of Directors shall directly oversee and monitor the implementation of the plans and instructions to be issued regarding this matter.

Peace be upon you,

Naji Muhammad Isa
Director, Banks and Currency Control Department

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Copies to:

• The Governor
• The Deputy Director, Banks and Currency Control Department for Office Supervision and Compliance Affairs
• The Deputy Director, Banks and Currency Control Department for Inspection Affairs
• The Deputy Director, Banks and Currency Control Department for Islamic Banking Affairs
• The Banking Supervision Office in Benghazi
• Compliance Units in Banks (for follow-up)

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Phone: +218 333 3591, Fax: +218 444 1488 21, SWIFT Code: CBLJLYLX, www.cbl.gov.ly ---