Regulatory Alerts2023-09-21
Added · Updated
Circular 17/2023: Restrictions on Industrial Companies' Letters of Credit for Spare Parts and Services
The Central Bank of Libya restricts Libyan industrial companies to utilizing no more than 4% of the value of letters of credit executed during the previous year for the direct external transfer of funds to cover spare parts, consulting, and maintenance services. Banks are mandated to enforce this limit, verify original customs declarations or service execution certificates within three months, and apply strict Know Your Customer (KYC) and anti-money laundering due diligence procedures. The circular explicitly establishes criminal and civil liability for the submission of forged or false documents in relation to these direct external transfers.