Central Bank of Libya

P.O. Box: 1103 - Postal Address: Central Bank of Libya - Tripoli - Libya

Circular ARN No. (2023/17)
Date: 22 Ramadan 1444 AH
Signed: 2023/4/12

Reference: Darom/N 804)

To: General Managers of Banks

Greetings,

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and the supervisory and regulatory role exercised by the Central Bank of Libya over banks in accordance with the provisions of the Law and the Anti-Money Laundering and Combating the Financing of Terrorism Law No. (1013) of 2017.

And with reference to Circular ARN No. (2022/15) issued on 19/12/2022, concerning the regulations governing the procedures for opening Letters of Credit.

And to Circular ARN No. (2023/10) issued on 22/2/2023, concerning the issuance of electronic cards (VISA-MASTERCARD) with a value of $100,000.00 for companies and small traders.

And to Circular ARN No. (2023/12) issued on 26/2/2023, concerning the amendment of certain regulations governing the procedures for opening Letters of Credit.

We inform you of the issuance of instructions from the Central Bank of Libya prohibiting banks operating in Libya from executing requests submitted by industrial companies in Libya for the purpose of supplying spare parts, and providing consulting and maintenance services, within a limit of (4%) of the value of the Letters of Credit that the company has executed during the last year with the Bank, either in a lump sum or in installments in the form of direct external transfers, including the value of the electronic card authorized for issuance under Circular No. (2023/10) mentioned above, in accordance with the following conditions and controls:

1. It is required that the industrial company be among those that have dealt with banks for a period of at least seven years and have had active current accounts during that period.

2. Suppliers are obliged to provide original customs declarations indicating that the supplied goods entered through official ports in Libya, with the declarations to be submitted to the banks within three months from the date of execution of the transfer. As for consulting services, a certificate of execution upon receipt of the service is to be provided.

3. Banks are obliged to require the concerned companies to complete the forms implementing the Customer Identification Policies (KYC) attached to Circular of the Governor of the Central Bank of Libya No. (2) of 2016, and circulated by Circular ARN No. (2016/12) issued on 27/10/2016, when conducting any transactions requested by the supplying entity.

Central Bank of Libya
P.O. Box: 1103 Postal Address: Misrata - Tripoli - Libya

(2)

4. Banks are obliged to exercise the necessary due diligence regarding requests submitted to them for the execution of direct external transfers in accordance with the controls and instructions issued regarding Anti-Money Laundering and Combating the Financing of Terrorism policies and due diligence towards customers.

5. Any person who submits forged or fake documents or false data to any bank concerning the execution of direct external transfers is exempted from criminal and civil liability.

Peace be upon you,

Naji Muhammad Isa
Director of Banking and Currency Control Department

// Copy to:

The Governor
The Deputy Minister of Economy of the National Unity Government To: Director of Audit Department - Central Bank of Libya To: Director of Payments and Settlements Department - Central Bank of Libya To: Director of Legal Department - Central Bank of Libya To: Director of Taxation Department - Central Bank of Libya To: Director of Information Technology Department - Central Bank of Libya To: Director of the Libyan Credit Information Center - Central Bank of Libya To: Director of Banking Operations Department - Central Bank of Libya To: Director of the Libyan Financial Intelligence Unit - Central Bank of Libya To: Director General of Customs Authority To: Deputy Director of Banking and Currency Control Department To: Supervisory Inspectors and Compliance Monitoring To: Deputy Director of Banking and Currency Control Department for Inspection Affairs To: Deputy Director of Banking and Currency Control Department for Tax Affairs To: Banking Supervision - Benghazi To: Heads of Compliance Units in Banks "For Follow-up" Banking Follow-up and Compliance Monitoring Department

K/Follow-up/2023 Circular