Circular 3/2017: Regulations Governing the Sale of Foreign Currency for Personal Purposes for 2017 Disbursed to Heads of Libyan Families

Central Bank of Libya P.O. Box 1103 Telex Addresses: CBLIBYA - Tripoli - Libya

Ref: / N.M. 804 (295) Circular No. (3/2017) Date: 5 Jumada al-Awwal 1438 AH Corresponding to: February 1, 2017 AD

To: General Managers of Banks To: Heads of Temporary Administrative Committees of Banks To: General Manager - Libyan Foreign Bank To: General Manager - Transactions Company for Financial Services

Greetings... Subject: Regulations Governing the Sale of Foreign Currency for Personal Purposes for 2017 to be Disbursed to Heads of Libyan Families

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and on the supervisory and regulatory role exercised by the Central Bank of Libya over banks, in accordance with the provisions of the law.

And with reference to Circular No. (1/2015) issued by this department on 11/1/2015, regarding clarification of banks' inquiries related to Circular No. (5) of 2014 concerning the regulation of banking card transactions.

And to Circular No. (2009/13), issued on 01/10/2009, regarding regulations for opening bank accounts in commercial banks.

And to Circular No. (2015/128), issued on 29/11/2015, regarding regulations governing the activity of personal remittances.

And to Circular No. (2015/5), issued on 01/09/2015, regarding regulations governing transactions with electronic banking cards.

And to Circular No. (2016/1), issued on 07/01/2016, regarding the implementation of Governor's Decision No. (5) of 2016, amending the provisions of Decision No. (245) of 2014 concerning transactions in foreign currency and determining the annual limit for electronic banking cards.

And to Circular No. (2016/5), issued on 12/4/2016, regarding monitoring and developing regulations for remittances and electronic banking cards, and monitoring the implementation of foreign currency transactions.

And to Circular No. (2016/12), issued on 27/10/2016, which forwarded Circular No. (2) of 2016 regarding the implementation of the Central Bank of Libya Board of Directors' Decision No. (36) of 2009 concerning rules for opening bank accounts in commercial banks, attached with a Know Your Customer (KYC) form for legal entities and individuals.

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And in pursuit of achieving justice in obtaining foreign currency. Therefore, it has been decided as follows:

First: Mechanisms and procedures for obtaining the foreign currency allocation:

1. The bank branch where the head of the family holds a local currency current account shall open a sub-account in US Dollars for this operation upon his request, adhering to the following: a. Use the National ID to verify that no US Dollar account has been opened for the same head of the family at another branch for the same purpose, which is done through the system prepared for this purpose. b. A commission for opening this account shall be calculated not exceeding ten dinars. c. The US Dollar account opened for this purpose is exempt from deducting any other commissions for its administration. d. When opening the sub-account, the bank must renew the customer's data in the banking system in accordance with Governor's Circular No. (2/2016) and the attached Know Your Customer (KYC) form.

2. The head of the family submits a request to purchase foreign currency (according to the attached form) for the value of 400 US dollars for each family member registered in the Civil Affairs system who holds a national ID number. The number of family members is considered at the time of submitting the first purchase request.

3. Bank branches shall forward applications to their administration through the foreign currency monitoring system for individuals.

4. The value of the foreign currency is deducted from the head of the family's local currency current account, and the value in US Dollars is added to the account opened for this purpose, according to the official rate on the day of purchase, plus an amount of (6) dinars for each family member as a service fee, which is deducted from the local currency current account.

5. Coverage requests from commercial banks are automatically forwarded to the Central Bank of Libya through the foreign currency coverage request receiving system.

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Second: Means of using foreign currency:

Accounts opened in US Dollars under this circular are used as follows: a. Making personal remittances in foreign currency via Western Union or Money Gram. b. Issuing or loading Visa or MasterCard cards for the account holder or one of his family members - within the available balance in the account. c. Withdrawing them in cash (the Central Bank of Libya is working to lift the ban imposed since December 2013 on the supply of foreign currency).

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Third: General Provisions:

1. The process of selling foreign currency continues in accordance with the provisions of this circular until 31/12/2017, and the account holder has the right to retain the amount purchased and dispose of it in subsequent years.

2. Banks are not allowed to dispose of funds deposited in these accounts except in accordance with what the Central Bank of Libya has specified in this circular.

3. A regulatory committee shall be formed at the level of each bank to examine appeals related to matters presented to it.

4. If any family obtains its allocation of foreign currency for its members in accordance with this circular, a supreme regulatory committee shall be formed from the Central Bank of Libya, the Civil Affairs Authority, and the National ID Project, which shall be responsible for investigating regulations referred to it through the regulatory committees at the banks.

5. A committee shall be formed presided over by the Central Bank of Libya and with the membership of the General Managers of Banks, to monitor the procedures and mechanism of work flow and address all violations. The Central Bank of Libya shall determine the dates and venues of its meetings, and the committee shall take the necessary measures to correct any deviations that may appear after auditing and review.

6. The Central Bank of Libya shall issue a periodic bulletin indicating the total number of families to whom amounts were disbursed in foreign currency, and the total amount disbursed.

7. The concerned departments and all banks shall begin implementing the provisions of this circular from the date of its issuance.

Peace, mercy, and blessings of God be upon you... Dr. Mukhtar Al-Hadi Al-Tawil Director of Banking and Currency Supervision Department

To: The Governor To: The Deputy of the Auditor General To: The Deputy of the Administrative Control Authority To: The Deputy of the Ministry of Finance To: The Deputy of the Ministry of Economy To: Director of Banking Information Department - Central Bank of Libya To: Director of Information and Settlements Department - Central Bank of Libya To: Chairman of the Committee for Regulating Citizens' Accounts Abroad - Central Bank of Libya To: Director of Legal Affairs Department - Central Bank of Libya To: Director of Accounts Department - Central Bank of Libya To: Director of Main Information Unit - Central Bank of Libya To: Director of Electronic Information Infrastructure - Central Bank of Libya To: Branch Managers of the Central Bank of Libya (in Benghazi - Benghazi - Martuba) To: Heads of Compliance Units in Banks - (Follow-up) To: Deputy Director of Banking and Currency Supervision Department for Office Supervision and Compliance Follow-up Department: Banking Organization and Compliance Accompaniment No./Ref: 2017/3

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