Central Bank of Libya

P.O. Box 1103 Telegraphic Address: Misribia - Tripoli - Libya

Publication: 1 R.M.N / 804

Reference: Circular No. (2012/19) Date: 28 Dhu al-Hijjah Gregorian Date: 13 November 2012

To: General Managers of Commercial Banks Chairmen of Temporary Administrative Committees of Commercial Banks General Manager - Libyan External Bank

Greetings...

Subject: Direct Foreign Remittances for Industrial Purposes

In implementation of the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and with reference to Circular (2012/17) issued on 07/08/2012 concerning the cancellation of Circular No. (2012/9) issued on 28/03/2012, which authorized commercial banks to execute requests for direct foreign remittances for commercial purposes.

And based on what the specialized committee for managing the crisis and monitoring the liquidity status of commercial banks, established by the decision of the Governor of the Central Bank of Libya No. (57) of 2011, reached in its meeting held on 24/09/2012, regarding addressing the problems facing various entities operating in the economic sector, and to enhance confidence in the work of banks, maintain exchange rate stability, and improve the purchasing power of the Libyan Dinar.

And in addition to the approval of the Governor of the Central Bank of Libya, we inform you that it has been decided to prohibit banks now, with the exception of executing direct foreign remittances for industrial purposes, according to the following controls:

First: Commercial banks are granted the authority to execute requests submitted by industrial companies operating in Libya, for the purpose of supplying raw materials, operating supplies, and spare parts, using direct foreign remittance, within a limit of (10%) of the value of sustainable credits that each company opens annually with the bank, in a single payment or in installments.

---

www.cbl.gov.ly swift code:CBLJLYLX +218 21 444 1488 Fax +218 21 333 3591 Phone

---

This is according to the following conditions and controls:

1- Regarding requests for the supply of operating supplies, spare parts, and raw materials, the company must provide documentation certifying that it is an industrial company, based on the license issued to it by the Ministry of Economy, and this license must be valid, and it must be registered in the commercial register on this basis.

2- It is required that the industrial company be among the companies that manage a current account with the bank, and that at least two years have passed since its dealings with the bank, and that the account has been active during that period.

Second: General controls:

1- The supplying company is committed to providing customs declarations indicating the entry of supplied materials via foreign remittance, within the period specified by the current instructions issued by the Central Bank of Libya.

2- The supplying entities are committed to providing the statistical code card issued by the Customs Authority, among the documents required to be presented to the bank, such that it is valid at the time of requesting the remittance. No card that has expired will be considered when reviewing requests for imports via direct foreign remittances.

3- Banks are committed to processing the concerned companies to complete the forms implemented for Know Your Customer (KYC) policies, as circulated in Circular No. (2007/12) issued on 27/02/2007, when conducting any transactions requested by the supplying entity, according to the forms circulated by the Central Bank of Libya, pursuant to the aforementioned circular.

4- Banks are committed to exercising due diligence regarding requests submitted to them to execute a direct foreign remittance, or open a documentary credit, or accept and pay documents for collection, in accordance with the provisions contained in Circular No. (2012/7) issued on 19/02/2012, concerning anti-money laundering and terrorist financing policies and due diligence towards customers, which include:

• Account opening procedures. • Procedures for strengthening the Libyan Dinar account. • Requests for remittance, documentary credit, or payment of document values.

---

www.cbl.gov.ly swift code:CBLJLYLX +218 21 444 1488 Fax +218 21 333 3591 Phone

# Central Bank of Libya

P.O. Box 1103
Telegraphic Address: Misrilia - Tripoli - Libya

- Examination of documents submitted for the settlement of foreign remittances, and shipping documents related to documentary credits, and documents for collection.

5- Any person who submits forged or fake documents or data to any bank, or incorrect data, relating to banking transactions being conducted, including direct foreign remittances, shall be subject to criminal and civil prosecution.

6- Banks are committed to referring a weekly statement of what is executed of foreign remittances for industrial and commercial purposes, to the Banking and Currency Supervision Department, including the name of the executing company, the purpose of the transfer, the value of the amount transferred directly, the bank account number, and the branch holding this account, such that this data is on a compact disc (CD). According to what is required in this regard.

Peace, mercy, and blessings of God be upon you

Dr. Mohamed Abdel Jalil Abousnina
Director of Banking and Currency Supervision Department

Copies to:
Mr. Governor
Mr. Deputy Governor
Mr. Undersecretary of the Ministry of Economy
Mr. Undersecretary of the Ministry of Finance
Mr. Undersecretary of the Ministry of Industry
Mr. Undersecretary of the Court of Accounts
Mr. General Manager of the Customs Authority
Mr. Deputy Director of Trade and Industry Administration
Mr. Deputy Director of Banking and Currency Supervision Administration
Mr. Director of Accounts Department – Central Bank of Libya
Mr. Director of Legal Affairs Department – Central Bank of Libya
Mr. Directors of Central Bank of Libya branches (Benghazi - Sabha - Tripoli)
Department of Banking Community and Compliance Affair
Office of the Court of Accounts

www.cbl.gov.ly    swift code: CBLJLYLX    +218 21 444 1488 Fax    +218 21 333 3591 Phone