Circular 5/2016

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

Reference: ARM N/ 804 Circular No. ARM N (2016/5) Date: 5 Rajab 1437 AH Corresponding to: 12 April 2016 AD

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

Greetings,

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 commercial banks in accordance with the provisions of the Law.

And with reference to Circular No. ARM N (2015/1) issued on 11 January 2015, regarding the clarification of banks' inquiries related to Circular ARM N (5) of 2014, concerning the regulation of dealings with bank cards.

And with reference to the periodic letter ARM N (128) of 2015 issued on 29 November 2015, concerning the regulations governing the activity of remittances for personal purposes.

And to what was reached in the meeting of the Director of the Payments and Settlements Department at the Central Bank of Libya with commercial banks held on Wednesday, 10 February 2016, regarding the discussion of setting regulations for the electronic banking system related to remittances and electronic bank cards.

And within the framework of the Central Bank of Libya's commitment to follow up and develop regulations regarding remittances (MoneyGram, Western Union) and electronic bank cards, and to follow up the implementation of foreign currency transactions, and to organize and regularize requests from commercial banks regarding the coverage of their obligations, and to ensure that all segments of society benefit from their use, the Central Bank of Libya emphasizes the necessity of adhering to and complying with all instructions governing the practice of these activities. In this regard, you are requested to comply with the following:

1- Each bank must determine the bank branches it wishes to allocate to provide remittance services (MoneyGram, Western Union) and link them to the foreign currency system at the Central Bank of Libya, taking into account the geographical distribution of all areas in Libya in its determination, and referring a statement thereof to the Banking and Currency Supervision Department.

2- Use the foreign currency monitoring system for individuals to inquire about the remaining value of the individual's annual limit for cards and remittances by entering the national number and attaching a copy of a valid passport, and verifying the customer's details regarding name and date of birth.

3- No remittance load for any prepaid card or issuance of a direct debit card or credit card shall be carried out except after entering the data and reserving the value in the foreign currency monitoring system.

4- No foreign currency transaction not listed in the system will be covered, and in case of non-compliance, all coverages for the violating bank will be suspended.

5- No remittance or issuance of an international card for a foreigner shall be carried out; the implementation of these transactions is limited to the Libyan citizen only.

6- Regarding the annual limit for the Libyan citizen in foreign currency for the purpose of cards and remittances, it is automatically determined by the system, and banks have the authority to determine the card value and number of remittances so as not to exceed the limit determined by the system.

7- Remittance transactions will not be covered except after fulfilling the following data and attaching them to the coverage request:

• The remittance report executed in the transfer system (MoneyGram, Western Union) from the transfer system (TRANSACTION REPORT). An electronic copy of the report (PDF + EXCEL) is also sent.
• The foreign currency monitoring system report on the remittances whose details were entered into this system. An electronic copy is referred.

8- Cards will not be covered except after fulfilling the following data and attaching them to the coverage request:

• The settlement report with the company (Visa or MasterCard) for the coverage period. An electronic copy of this report and an electronic report of all card transactions are referred.
• The foreign currency monitoring system report on the cards whose details (load issuance) were referred to the system during the requested coverage period.

Peace, mercy, and blessings of God be upon you,

Abdulhafidh Masoud Tripoli Director of Banking and Currency Supervision Department / Acting

Copy to Mr. / The Governor Copy to Mr. / Head of the Committee for Covering Commercial Banks' Accounts with Correspondents Abroad Copy to Mr. / Director of the Accounts Department Copy to Mr. / Director of the Payments and Settlements Department Copy to Mr. / Director of the Information Security Department Copy to Mr. / Director of the Media Office Copy to the Banking Follow-up and Compliance Monitoring Department

Phone: +218 3333591, Fax: +218 4441488, www.cbl.gov.ly, swift code: CBLJLYLX