Circular No. 13/2023: Regulations Governing Direct Foreign Remittances for the Import of Manufactured Gold

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

Reference: R.M / N 804

Circular No. 13/2023 Date: 6 Rabi' al-Thani 1444 AH Corresponding to: 27 February 2023

To: General Managers of Banks

Greetings,

Subject: Regulations Governing Direct Foreign Remittance Procedures for the Import of Manufactured Gold Goods

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.

We convey to you the instructions of the Central Bank of Libya regarding the regulations governing direct foreign remittance procedures for the import of gold goods, as follows:

1. Banks are granted the authority to decide on requests to accept direct foreign remittances for the import of gold and its legally permitted requirements, provided that a valid banking code (CBLKEY) is available, on the condition that the company has previously obtained the banking code (CBLKEY) for a period of no less than two years.

2. The import of gold under this mechanism is limited to manufactured gold, and the value of its import operations through direct remittances is covered from the account of the Libyan bank with its correspondents, which are (Arab Banking Corporation (ABC) - Arab Bankers Union) and European (UBAE) – Arab Turkish Bank (ATBANK) – Arab Bank for Investment and Foreign Trade (ARBIFT), to the account of the exporting company at the same correspondent.

3. The bank must study the submitted request and subject it to review and auditing by the competent departments (Compliance – Due Diligence – Internal Audit – and Risks), exercising due diligence to verify the accuracy of the data related to the entity requesting the direct remittance, and ensuring there are no reasons preventing the continuation of dealing with it before proceeding with the remittance procedures. In case of approval, the company deposits the full amount corresponding to the invoice value in Libyan Dinars, including all expenses and commissions charged by the bank.

4. The purchase of foreign currency to cover the direct remittance is not requested except after obtaining preliminary approval through the coverage system at the Central Bank of Libya.

(2)

5. The upper limit for the value of the direct remittance for the import of manufactured gold is (2) two million US dollars or its equivalent in other currencies, and the value of the direct remittance for the import of manufactured gold may be split into the mentioned amount, on the condition that the ceiling for each company is (15) million US dollars annually or its equivalent in other currencies as a maximum.

6. The initial invoice must include all data related to the description, weight, quantity, and price, and the calculation of the beneficiary entity abroad must be in the same country from which the initial invoice was issued.

7. The invoice value must be fully covered by the available balance in the account at the time of requesting approval for the foreign remittance, with the company depositing an additional amount equal to 7% of the total invoice value with the bank to guarantee the company's execution and commitment to providing all required documents and papers to settle the shipment. In case the company fails to comply with this, the guarantee amount shall accrue to the Central Bank of Libya, and legal measures shall be taken against the violating company.

8. Banks are committed to exercising due diligence regarding the conformity of the data stated in the invoice with the inspection certificate and the export declaration from the exporting country, with the party violating this bearing legal responsibility.

General Regulations:

1. Submission and compliance with the anti-money laundering and counter-terrorism financing regulations stipulated in Law No. (2017/1013).

2. Suppliers are committed to providing original customs declarations indicating that the supplied goods entered through air ports only in Libya, on the condition that the customs declarations are submitted to the banks along with the final sales contract and the attached form within a period not exceeding one month only from the execution of the remittance.

3. Each company is registered in its dealings with only one bank.

4. When the client determines the date to complete the purchase and confirms the readiness of the goods via a message from the exporting company, the client notifies the bank via an official letter to transfer the value at the correspondent to the account of the exporting company at the same correspondent, with the client being notified of the transfer process immediately to complete the contracting process and receive the goods at the same time.

5. The client (the supplying company) bears full responsibility for any fraud, deception, evasion, or money laundering according to a notarized commitment with a certified contract drafter.

Issued by the Central Bank P.O. Box 1103 Telegraph Address: Central Bank of Libya – Tripoli – Libya

(3)

6. The company is not granted new approval for import except after referring all documents of the previous shipment, uploading them to the coverage system, and obtaining settlement approval. These documents (copies of travel tickets, boarding passes, gold purchase contract, gold assay certificate, export declaration from the exporting country of the goods, inspection certificate issued by the inspection company, final customs declaration, Chamber of Commerce or Industry of the exporting company, certificate of origin) must be uploaded after the completion of procedures, not exceeding a period of (one month) from the date of approval by the account management department for the remittance, and this is a condition for approving the refund of the guarantee value and approval for any new import process.

Therefore, you are requested to take the necessary measures to implement the aforementioned regulations subject to inspection.

Peace be upon you,

Naji Muhammad Issa Director of Banking and Currency Supervision Department

// Copy to // Mr. / The Governor Mr. / Director General of Customs Service Mr. / Director of Audit Department – Central Bank of Libya Mr. / Director of Legal Department – Central Bank of Libya Mr. / Director of Information Department – Central Bank of Libya Mr. / Director of Information Technology Department – Central Bank of Libya Mr. / Director of Libyan Financial Intelligence Unit – Central Bank of Libya Mr. / Director of Compliance Department – Central Bank of Libya Mr. / Director of the Credit Information Technical Center – Central Bank of Libya Mr. / Deputy Director of Banking and Currency Supervision Department for Large Supervision and Compliance Follow-up Affairs Mr. / Deputy Director of Banking and Currency Supervision Department for Inspection Affairs Mr. / Deputy Director of Banking and Currency Supervision Department for Islamic Banking Affairs Mr. / Administration / Egyptian Supervision with Banai For Visual Assistance Division and Compliance Affairs Mahmoud / Malmoos