Circular No. 10/2012 Regarding the Regulations Governing the Settlement of Documents Submitted for Collection

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

Reference: M.N/804 Circular (R.M.N No.) (2012/10) Date: 05 Jumuada al-Awwal 1433 AH Signed: 28 March 2012 AD

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

Greetings...

Subject: Regulations Governing the Settlement of Documents Submitted for Collection

Based on the provisions of Law No. (1) of 2005 AD regarding Banks, And referring to our circular letter No. (2011/146) sent to all Banks on 17/10/2012 AD, regarding the emphasis on the necessity of proceeding with accepting requests for opening bank credits for import purposes, within the framework of priorities specified for imports by the Economic Affairs Department of the Executive Office of the National Transitional Council. We inform you of the approval of the Governor of the Central Bank of Libya to grant commercial banks permission to resume processing the settlement of documents submitted to them for collection, according to the procedures followed and commercially accepted in this regard, without referring to the Central Bank of Libya for approval, and emphasizes the necessity of taking necessary measures and procedures to limit the possibility of forgery that may arise as a result of banks circulating documents for collection, and to comply with the controls set out below:

1. Acceptance of documents for collection through the beneficiary's bank abroad, and documents submitted directly by the supplier are not considered.
2. The necessity to verify that the documents required for settlement have not had their value paid previously.
3. Submission of the original customs declarations, stamped with a thermal seal, which indicate the entry of goods through Libyan customs ports.

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4. The supplying entities are obliged, when using documents for collection, to provide the Statistical Code Card issued by the Customs Authority, among the documents they submit to the bank.
5. Verification of the validity of the documents of the transfer requesting entity, according to the instructions issued by the Central Bank of Libya specifically, in the case of opening an account for the supplying entity for the first time at the bank.
6. Submission of a monthly statement to the Banking and Currency Control Department, on a compact disc (CD), containing the names of the supplying entities under documents for collection, and the volume and purposes of the documents being settled at banks for this purpose, according to the tracker. And emphasizing the necessity of complying with the instructions issued by the Central Bank of Libya in this regard, all bank branches will be subjected to periodic inspection procedures to verify the extent of their compliance with the application of the instructions organizing imports by documents submitted for collection, in implementation of the provisions of Law No. (1) of 2005 AD regarding Banks.

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

Dr. Muhammad Abdul Jalil Abu Sineena Director of Banking and Currency Control Department

For information / The Governor For information / The Deputy Governor For information / The Undersecretary of the Ministry of Economy and Trade For information / The Undersecretary of the Ministry of Finance For information / The Undersecretary of the Court of Accounts For information / The General Manager of the Customs Station For information / The Secretary of the Management Committee of the General Union of Chambers of Commerce and Industry For information / The Director of Legal Affairs Department, Central Bank of Libya For information / The Director of Aid Department, Central Bank of Libya To: Managers of Central Bank of Libya branches (Benghazi, Sabha, Sirte) Data and Statistics Department In B/2012 AD. Muhammad

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