Circular 1/2012: Resumption of Personal Foreign Remittance Services

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

Street: A.R.M.N / 804
Circular A.R.M.N No. (2012/01)
Date: 08 Safar 1433 AH
Corresponds to: 04 January 2012 AD

To: The Exporters of Commercial Banks
To: The Heads of the Interim Administrative Committees of Commercial Banks To: The Engineer Al-Sam – Al-Sarfa Company for Exchange and Financial Services "Professor"

Subject: Resumption of Personal Foreign Remittance Activities -----

With reference to the decision of the Board of Directors of the Central Bank of Libya No. (2) of 2011, regarding the regulation of foreign currency operations under exceptional circumstances.

And with reference to our periodic letter No. A.R.M.N (2011/197), issued on 15 December 2011, regarding the authorization for commercial banks and the exchange company, which previously obtained approval to provide the fast foreign remittance service (via Western Union and MoneyGram companies), and which currently have this service available, to accept incoming remittances and deliver them to their owners according to the procedures in force in this regard.

And based on what the specialized committee concluded regarding the bottlenecks facing commercial banks concerning liquidity, formed by the decision of the Governor of the Central Bank of Libya No. (57) of 2011, in its meeting held on 28/12/2011, regarding the resumption of the activity of fast foreign remittances for personal purposes, through commercial banks, using the services of Western Union and MoneyGram companies, to help solve the liquidity problem in banks.

And based on what was presented at the meeting of the Board of Directors of the Central Bank of Libya on 02/12/2011, and with the approval of the Deputy Governor, we inform you that it has been decided to authorize commercial banks and the exchange company, which previously obtained approval to contract with Western Union and MoneyGram companies, to provide the fast foreign remittance service, which they had previously commenced this activity, to resume the execution of fast foreign remittances, for personal purposes, for outgoing and incoming, according to the controls reached to these banks, such that the ceiling of the outgoing remittance in each instance does not exceed ($1,000), or its equivalent in convertible foreign currencies, and such that the total amount transferred to one person does not exceed a total of ($5,000) five thousand dollars per year, according to what was practiced previously, for Libyans and foreigners who have residence in Libya.

And to enable banks that need to cover their obligations resulting from the difference between the proceeds of incoming and outgoing remittances through them, to cover the obligations resulting from this activity with correspondent banks, it has been decided to allocate an amount of foreign currency to cover these obligations not exceeding ($100 million) one hundred million US dollars per month, for all banks, with each bank's share in this amount determined according to the relative importance of its previous exchange remittances, based on data submitted to the Banking and Currency Supervision Department during the years (2009-2010), and the Account Management Department at the Central Bank of Libya shall determine each bank's share of the total amount allocated for this purpose, and notify the concerned bank thereof.

www.cbl.gov.ly , swift code:CBLJLYLX ,+218 21 444 1488: Fax ,+218 21 3333591 : Phone

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

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And since adherence to the ceiling determined for each bank is essential for the continued provision of this service, given the current circumstances of the foreign currency situation in Libya, the concerned commercial banks and the exchange company are required to contact the Account Management Department at the Central Bank of Libya to know the monthly ceiling determined for them, and to submit a statement at the end of each period, clarifying the usage of this ceiling, so that their obligations resulting from this activity can continue to be covered.

It is also requested to submit a statistical statement, weekly, regarding the remittances executed by the banks via Western Union and MoneyGram companies, to the Banking and Currency Supervision Department for follow-up purposes.

Dr. Muhammad Abdul Jalil Abu Sineena
Director of the Banking and Currency Supervision Department

Copy to: The Governor
Copy to: The Deputy Governor
Copy to: The Auditor General's Office Deputy
Copy to: The Director of the Account Management Department at the Central Bank of Libya Copy to: The General Manager of the Libyan Foreign Bank Copy to: The Deputy Director of the Banking and Currency Supervision Department Copy to: The Managers of the Central Bank of Libya branches (Benghazi - Sabha - Sirte) Copy to: The Egyptian Follow-up and Compliance Monitoring Department Copy to: The Data and Statistics Department Copy to: The Inspection Branch of the Banking and Currency Supervision Department

www.cbl.gov.ly , swift code:CBLJLYLX , +218 21 444 1488: Fax , +218 21 3333591: Phone