Circular 21/2012 on the Requirement for Commercial Banks to Inquire with Relevant Authorities Regarding International Shipping Documents

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

Reference: ARM N 804

Circular No. (21/2012) Date: 20 Dhu al-Hijjah Corresponding to: 05 November 2012

To: General Managers of Commercial Banks To: Heads of Temporary Administrative Committees of Commercial Banks To: General Manager of the Libyan Foreign Bank

Greetings,

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and the provisions of Law No. (2) of 2005 concerning the Combating of Money Laundering and its Executive Regulation.

In continuation of this Department's Circular No. (2010/1) dated 2010/1/6, which requested all banks to ensure the validity of international shipping documents submitted to them and to participate in the information network of the Trade Services Bureau of the International Chamber of Commerce.

And referring to our periodic letter No. ARM N (2010/164) dated 2010/8/2, which referred to the aforementioned circular and emphasized the necessity of participating in the information network of the Trade Services Bureau of the International Chamber of Commerce and subjecting suspicious transactions to inquiry and verification of the validity of shipping documents submitted to them before settlement.

Therefore, you are requested to adhere and comply with the following:

1. Subscribe to the (Ship Monitoring Office) of the International Chamber of Commerce (Trade Services Bureau).

2. It is necessary to contact the Ship Monitoring Office of the International Chamber of Commerce to verify shipping documents, in accordance with international customs, before settling any documents presented for collection.

3. Instruct correspondents to verify documents professionally, in accordance with the controls and international customs for Documentary Credits (UCP 600), particularly regarding bills of lading and certificates of origin, and notify them that failure to exercise the necessary professional diligence will result in the prohibition of future dealings with them.

We also inform you that lack of attention in this regard will result in charges of complicity, negligence, and failure to protect public funds, and supporting corruption and money laundering networks.

May you all remain under God's care,

Dr. Mohammed Abduljalil 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 Court of Accounts Mr. Director of Banking Operations - Central Bank of Libya Mr. Director of the Financial Intelligence Unit - Central Bank of Libya Banking Supervision and Compliance Review Department

/ Copy / Sector / Circular No. 14

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