Circular 4/2023: Obligations Regarding Credit Information Center Data Submission and Inquiries

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

Circular AR-MN No. (2023/04) Date: 13 Jumaada al-Thani 1444 AH Corresponding to: 05 January 2023

To: General Managers of Banks

Greetings,

Based on Banking Law No. (1) of 2005, as amended by Law No. (46) of 2012, and Law No. (1) of 2013 regarding the prevention of fraudulent transactions, and in light of the supervisory and regulatory role exercised by the Central Bank of Libya over banks operating in Libya in accordance with legal provisions.

With reference to Governor's Decision No. (48) of 2009 regarding the establishment of the Libyan Credit Information Center, and to Banking and Currency Supervision Department Circular No. (2022/1) dated 12 January 2022 regarding the updating of financing, investment, and risk policies, and Circular No. (2022/12) regarding reporting details of granted and non-performing facilities to the Libyan Credit Information Center and suspending the Banking Code (CBL-KEY), and to the periodic letter issued by the Banking Supervision Department dated 15/06/2021 (No. 2021/179) regarding taking necessary measures to implement the requirements of the Libyan Credit Information Center according to instructions issued by the Central Bank of Libya.

And within the framework of the Central Bank of Libya's efforts to develop the credit inquiry system in accordance with international best practices and in line with developments in the credit information industry, and to ensure proper management of risks associated with granting financing, enhance prudential supervision and early warning to serve the banking sector, and support digital transformation, financial stability, and financial inclusion.

We inform you that it has been observed that some banks have not complied with providing the required data to the Libyan Credit Information Center and updating it within the specified deadlines, nor have they conducted inquiries when granting or renewing any financing. This has negatively affected the accuracy of data and information provided to the Libyan Credit Information Center, and the decision-making process for financing by banks.

Therefore, you are requested to comply with the following:

1. Extract credit data for all existing granted facilities, for natural and legal persons, from the Core Banking System, and send it electronically to the inquiry system at the Libyan Credit Information Center within the specified deadlines, in accordance with the technical conditions and coordination approved by the Center.

[1]

www.cbl.gov.ly - swift code :CBLJLYLX- +218 21 444 1488; Fax: +218 21 333 3501 ...

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

2. Take necessary measures to ensure that the credit data provided to the Libyan Credit Information Center is correct, accurate, complete, and updated, with the necessity of immediate correction of all observations and discrepancies received from the Libyan Credit Information Center, and the relevant management bears responsibility for this.

3. Update credit data by including any modifications or changes that occur and notify the Center electronically of them at the time of occurrence.

4. Inquire about the customer before granting financing, and keep a copy of the credit information report in the financing file.

5. Provide the Libyan Credit Information Center with hard copies quarterly of facilities granted to customers according to forms approved by the Center.

6. Notify the Center of any non-performing facilities, whether for individuals or legal entities, to take necessary measures to suspend the Banking Code (CBL-KEY) until their status is settled, as stipulated in Circular No. (2022/12).

7. Take all necessary measures to ensure the confidentiality of customer information, and not to access it except by authorized personnel.

Given the importance of the matter, full attention should be paid to the subject, and all necessary measures should be taken to implement these instructions. The responsibility for implementing what is stated in this circular lies directly with the General Manager and managers of relevant departments, and the heads of boards of directors and compliance managers in banks must ensure the implementation of these instructions. In case of any inquiries, you can contact via the following email: info@lcic.gov.ly

Naji Muhammad Issa Director of Banking and Currency Supervision Department

To: The Governor To: Heads of Boards of Directors of Banks To: Director of the Libyan Credit Information Center To: Director of the Legal Department, Central Bank of Libya To: Director of the Accounting Department, Central Bank of Libya To: Director of the Financial Information Unit, Central Bank of Libya To: Deputy Director of Banking and Currency Supervision Department To: Deputy Director of Banking and Currency Supervision Department for Islamic Banking Affairs To: Deputy Director of Banking and Currency Supervision Department for Coverage Affairs To: Deputy Director of Banking and Currency Supervision Department for Large Supervision and Compliance Monitoring To: Banking Supervision in Benghazi To: Compliance Unit Managers

With Success

[2]

www.cbl.gov.ly - swift code :CBLJLYLX- +218 21 444 1488; Fax: +218 21 333 3501 ...