Circular 5/2017: Executive Procedures and Controls for Opening Accounts for Non-Profit Organizations and Institutions

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

Reference: I.R.M.N / 804 Circular [I.R.M.N No. 2017/5] Date: 02 Jumada al-Thani 1438 AH Corresponding to: 01 March 2017 AD

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

Greetings,

Subject: Executive procedures and controls for Circular of the Governor No. (3) of 2016 regarding the opening of accounts for non-profit organizations and institutions

Based on the provisions of Law No. (1) of 2005 regarding 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 of the Governor of the Central Bank of Libya No. (1), for the year 2016, issued on 25/10/2016, regarding policies for combating money laundering and terrorist financing and customer due diligence.

And to Circular I.R.M.N No. (2016/12), issued on 27/10/2016, regarding the referral of Circular of the Governor No. (2) of 2016, regarding the implementation of the decision of the Board of Directors of the Central Bank of Libya No. (36) of 2009, regarding the rules governing the opening of commercial bank accounts, attached with two Know Your Customer (KYC) forms, to legal entities and individuals, for information and taking necessary actions regarding the same.

And Circular I.R.M.N No. (2016/13), issued on 27/10/2016, regarding the referral of Circular of the Governor of the Central Bank of Libya No. (2016/1), regarding policies for combating money laundering and terrorist financing and customer due diligence, attached with three explanatory appendices for some articles of the Money Laundering Combating Law and the Convention for the Suppression of the Financing of Terrorism.

And Circular of the Governor of the Central Bank of Libya No. (3), for the year 2016, issued on 06/11/2016, regarding the controls for opening accounts for non-profit organizations and institutions.

And while we emphasize the necessity of adhering to the controls and instructions issued by the Central Bank of Libya mentioned above, we inform you of the issuance of the instructions of the Central Bank of Libya as follows: -

First: Controls related to opening the account.

1. No account shall be opened for non-profit organizations and institutions except after review and approval of the request by the Head of the Compliance and Anti-Money Laundering Unit at the bank, and the request for approval shall be referred by the General Manager of the bank, including his initial consent to open the account referred to the Banking and Currency Supervision Department to obtain final approval to open the account.

(2)

2. Requests to open bank accounts for non-profit organizations and institutions shall be submitted through the bank through which the entity wishes to open an account.

Second: Controls on dealing with the account.

1. Submission of a commitment certified by those authorized to manage the account of the non-profit organization or institution stating that it does not have accounts with other banks, except those mentioned in the request submitted regarding the same.
2. Banks are obliged to refer all documents related to the organization, such as the approved statutes, the establishment contract, and the minutes of the General Assembly meeting by which the members of the Board of Directors were named and approval of the announcement was given, to the relevant authorities, and to the Banking and Currency Supervision Department.
3. The monitoring of the movement of the account of the non-profit organization or institution shall be done directly by the Head of the Compliance Unit, the Anti-Money Laundering Unit, and the General Manager of the bank, through periodic reports prepared regarding the same.

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

Dr. Mukhtar Al-Hadi Al-Tawil Director of the Banking and Currency Supervision Department

• To the Governor
• To the Deputy Governor
• To the Deputy Governor
• To the Director of the Office of the Administrative Supervision Authority
• To the Director of the Legal Affairs Department at the Central Bank of Libya
• To the Director of the Banking Operations Department - Central Bank of Libya
• To the Deputy Director of the Banking and Currency Supervision Department for Office Supervision and Compliance Follow-up
• To the Deputy Director of the Banking and Currency Supervision Department for Field Supervision, Legislation, and Policies
• To the Head of the Compliance Unit and Compliance Units at Commercial Banks for follow-up
• To the Banking Follow-up and Compliance Monitoring Department
• Archive / Circular messages 2017/5

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