Circular No. 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 No. (3) of 2016 issued by the Governor regarding the opening of accounts for non-profit organizations and institutions.

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.

And with reference to Circular No. (1) of 2016 issued by the Governor of the Central Bank of Libya, dated 25/10/2016, concerning anti-money laundering and counter-terrorist financing policies and customer due diligence.

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

And Circular I.R.M.N No. (2016/13), issued on 27/10/2016, concerning the referral of Circular No. (2016/1) issued by the Governor of the Central Bank of Libya, concerning anti-money laundering and counter-terrorist financing policies and customer due diligence, attached with three explanatory appendices for some articles of the anti-money laundering law and the convention on the suppression of terrorist financing.

And Circular No. (3) of 2016 issued by the Governor of the Central Bank of Libya, dated 06/11/2016, concerning 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 Central Bank of Libya instructions as follows:

First: Controls related to account opening.

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, with the approval request being 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 where the entity wishes to open an account.

Second: Controls related to account transactions.

1. Submission of a certified undertaking 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 this matter.
2. Banks are obligated to refer all documents related to the organization, such as the approved charter, the establishment contract, and the minutes of the General Assembly meeting by which the board members were named and the announcement was approved, to the Banking and Currency Supervision Department.
3. Monitoring the account activity of the non-profit organization or institution shall be conducted directly by the Head of the Compliance Unit, the Anti-Money Laundering Unit, and the General Manager of the bank, through periodic reports prepared for this purpose.

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

www.cbl.gov.ly, swift code: CBLJLYLX, +218 21 444 1488, +218 21 333 3691