Regulatory Alerts2022-06-07
Central Bank of Libya Circular Letter No. 13/2016 on Settlement of Insurance Companies' Financial Obligations
The Central Bank of Libya issued Circular Letter No. 13/2016 requiring insurance and reinsurance companies to obtain prior approval from its Banking and Currency Supervision Department before executing foreign currency transfers to settle overseas obligations. The directive mandates that these transfer requests be routed through a single designated commercial bank and supported by specific documentation, including prior approval from the Insurance Supervision Authority, an authorized company letter detailing the purpose and amount, embassy-approved invoices or claims, and a corresponding Egyptian account statement. These measures standardize foreign exchange controls for the insurance sector by aligning their transfer procedures with existing commercial banking regulations and ensuring strict compliance through item-by-item verification.