Regulatory Alerts2023-07-12
Added · Updated
Circular 15/2022: Regulations Governing the Procedures for Opening Letters of Credit
The Central Bank of Libya establishes specific limits for single letters of credit, capping them at USD 3 million for service goods, USD 5 million for commercial goods, and USD 10 million for industrial goods, with any amount exceeding these limits requiring prior approval from the Banking and Currency Supervision Department. The circular mandates that banks verify the legitimacy of applicants, ensure full currency coverage before issuance, and enforce strict documentation requirements including initial invoices, insurance, inspection certificates, and tax clearance. It prohibits back-to-back letters of credit and restricts the acceptance of shipping documents issued prior to the credit's issuance, except for bulk commodities within a 10-day window. Additionally, it outlines specific sectoral needs for partial coverage and requires adherence to anti-money laundering laws and customs declaration submissions within three months.
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