Circular No. 28/2013

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

Reference: A.M.N/804
Circular No. 28/2013
Date: 29 Rabi' al-Awwal 1434 AH
Corresponding Date: 10/2/2013 AD

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

Greetings,

This Administration has received a letter from the Director of the Audit Department at the Central Bank of Libya, dated 17/1/2013 AD, which enclosed a report concerning clearing checks submitted by certain banks and drawn on the Central Bank of Libya. The aforementioned checks in the report were initially submitted via electronic clearing (ACP) and executed; however, they were subsequently re-submitted via manual clearing. Due to technical regulations within the banking system (CBS) and following the monitoring of current accounts by the Banking Operations Department at the Central Bank of Libya, these checks have been returned to the respective banks.

With reference to Circular No. (1/2005 AD), dated 1/1/2005 AD, concerning the procedures to be followed to activate internal control regulations across all operating banks and bank branches.

And to our Circular No. (191/2012), dated 22/7/2012 AD, concerning the referral of electronic and manual clearing regulations for implementation in all commercial banks.

And our Circular No. (1/2013), dated 2/1/2013, concerning the instructions of the Governor of the Central Bank of Libya regarding the extension of manual clearing operations and the extension of the acceptance period for high-value checks through the (ACP) system until the end of March 2013.

Accordingly, you are requested to strictly adhere to and comply with the instructions issued by the Central Bank of Libya regarding the regulations governing clearing checks, and to strengthen internal control procedures to mitigate risks associated with such operations, which have been previously highlighted by the Central Bank in various correspondences. Furthermore, you are requested to adopt methods that prevent the re-submission of executed checks drawn on various banks through the applied clearing system. We also wish to highlight that the Central Bank will be compelled to penalize non-compliant banks in accordance with the provisions of Law No. (1) of 2005 AD concerning Banks.

Peace, mercy of Allah, and blessings be upon you.

Dr. Mohamed Abdeljalil Aboustiet
Director, Banking and Currency Supervision Department

Copy to: The Governor
Copy to: The Deputy Governor
Copy to: The Director of the Audit Department - Central Bank of Libya Copy to: Banking Follow-up and Compliance Monitoring Department Ref: B. Jader / Periodic Letters: 83

www.cbl.gov.ly swift code: CBLJLYLX fax: +218 21 444 1488 phone: +218 21 333 3591