Circular 2010/8 - Authorization of Banks to Transfer Net Profits of Foreign Companies

LIBYAN CENTRAL BANK

P.O. Box 1103 Tripoli - The Great Socialist People's Libyan Arab Jamahiriya Telegram Address: Masrtiba - Tripoli

Reference: I.M.N / 819 / 52 Circular No. (2010/8) Date: 11 Jumada al-Awwal Corresponding to: 25 Al-Tair 1378 A.H. (2010 A.D.)

To: Brothers / General Managers of Commercial Banks To: General Managers of Libyan Banks Abroad

Greetings...

Subject – Authorization of Banks to Transfer Net Profits of Foreign Companies Operating Under the Umbrella of the Law for Encouraging Investment of Foreign Capital

Based on the provisions of Law No. (1) of the year 1373 A.H. (2005 A.D.) concerning Banks.

And with reference to Circular No. (2002/8) issued on 31/3/2002 A.D., concerning the dissemination of the controls governing transfers of foreign companies operating within the framework of the provisions of Law No. (5) of the year 1426 Gregorian (1997 A.D.) concerning the encouragement of investment of foreign capital, amended by Law No. (7) of the year 1371 A.H., and its executive regulations.

And to Circular No. (2002/15) issued on 25/6/2002 A.D., concerning the controls related to regulating accounts of foreign contracting companies operating in the Jamahiriya, and the mechanism of deposit, withdrawal, and transfer abroad.

And to the Circular Letter No. (2010/15) issued on 14/1/2010 A.D., whereby commercial banks were granted the authority to transfer dues of foreign companies operating in the Jamahiriya.

We inform you that it has been decided to authorize commercial banks to process applications for the transfer of net profits submitted to them by companies operating under the umbrella of Law No. (5) of the year 1426 Gregorian (1997 A.D.), referred to above, without referring to the Libyan Central Bank, provided that the following documents are fulfilled:

1. An audited general balance sheet of the company, approved by an accountant and a statutory auditor, for the financial year for which the net profits are to be transferred.
2. Approval from the General Authority for Ownership and Investment.

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3. Approval from the General Assembly of the company requesting the transfer.
4. Evidence of the settlement of taxes on the realized profits.
5. The company completing a remittance application form issued, according to the forms approved by the Libyan Central Bank, and fulfilling the Know Your Customer (KYC) policy documents for the bank account managed by the company at the bank.

And peace, mercy, and blessings of God be upon you...

Dr. Muhammad Abdul Jalil Abustina Director of the Banking and Currency Supervision Department

To: The Governor To: The Deputy Governor To: The Secretary General of the General People's Committee for the Supervisory and Control Apparatus. To: The Director of the Committee Affairs Office in the General People's Committee for the Current Supervisory and Control Apparatus. To: The Director of the Investment Department at the General Authority for Ownership and Investment. To: The Director of the Legal Affairs Department - Libyan Central Bank. To: The Director of the Main Financial Intelligence Unit - Libyan Central Bank. To: The Banking Follow-up and Credit Monitoring Department. To: The Data and Statistics Department. 3.P.B. 2010