Circular 1/2018: Requirements for Filling Leadership Positions in Banks

Central Bank of Libya P.O. Box 1103 Telegraphic Address: Central Bank of Libya – Tripoli – Libya

Reference: R/M N /804 Circular R/M N No. (2018/1) Date: 24 Rabi' al-Thani 1439 AH Corresponding Date: January 10, 2018 AD

To: Members of the Board of Directors of Banks Mr. Chairman of the Board of Directors – Transactions Company for Financial Services.

Greetings,

Subject: Regarding the requirements for filling leadership positions in banks and entities subject to the supervision and oversight of the Central Bank of Libya

In implementation of the provisions of Law No. (1) of 2005 AD regarding Banks, as amended by Law No. (46) of 2012 AD, and in light of the supervisory and regulatory role of the Central Bank of Libya pursuant to the provisions of the law.

And within the framework of following up the Banking Supervision Department's decisions regarding the appointment of employees to senior management positions in banks and financial institutions subject to the supervision and oversight of the Central Bank of Libya, it was noted that most of those decisions involve appointing general managers or their deputies on a temporary basis, without officially appointing them for an indefinite period, while they exercise all powers granted to them by the statutes. This necessitates subjecting such decisions to the approval of the Central Bank of Libya, in accordance with the authorities granted to it under the provisions of the Banks Law, regardless of the temporary nature of such appointments.

Accordingly, we inform you of the issuance of instructions from the Central Bank of Libya regarding compliance with the conditions that must be observed when issuing decisions related to leadership positions in banks and financial institutions, as set out below:

1. Referring decisions related to the temporary appointment of general managers and their deputies to the Banking Supervision Department of the Central Bank of Libya for review and taking the necessary measures regarding them.

2. Not appointing a deputy general manager to act as head of the institution in the absence of a general manager, and in all cases, the position of general manager must not be left vacant.

3. The duration of the temporary appointment for the general manager or their deputy shall not exceed a period of six months. This period is considered expired for banks or financial institutions that were authorized to be managed by a general manager or their deputy on a temporary basis at the time of issuance of these instructions, and they must regularize their status within three months from the date of this circular.

And while we emphasize the necessity of adhering to and complying with the controls mentioned above, the boards of directors of the concerned banks and financial institutions are requested to regularize their status and issue the necessary corrective decisions within a maximum of three months from the date of notification of these instructions, and to refer them to the Banking Supervision Department to take the necessary procedures regarding them.

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

Musab Ammar Al-Marzouqi Deputy Director of the Banking Supervision Department for Field Supervision, Policies, and Legislation

Copies / Retention: • Mr. Chairman of the Supervisory Administration • Mr. Director of the Executive Affairs Department – Central Bank of Libya • Mr. Director of the Banking Supervision Department • Messrs. Directors of Central Bank of Libya branches (Benghazi – Sabha – Bayda) • Messrs. Members of the Boards of Directors of Specialized Banks (Tripoli) • Mr. Deputy Director of the Banking Supervision Department for Explicit Audit and Compliance Monitoring Affairs • Mr. Deputy Director of the Banking Supervision Department for Islamic Banking Affairs • Islamic Banking Department

P.O. Box 2018/ . Fax: +218 21 444 1488 www.cbl.gov.ly, Swift Code: CBLJLYLX, Tel: +218 21 333 3591