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2022-06-07

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.

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Central Bank of Libya P.O. Box 1103 | Telegram Address: Libyabank - Tripoli, Libya Reference: R.M./N 804 Circular Letter No. (2016/13) Date: 21 Rabi' al-Thani 1437 AH / January 31, 2016 AD

To: General Importers at Commercial Banks To: Heads of Temporary Administrative Committees at Commercial Banks To: Managing Director, Libyan Foreign Bank

Greetings...

Subject: Settlement of Financial Obligations Due from Insurance Companies

Based on the provisions of Law No. (1) of 2005 regarding Banks and its amendments, and within the framework of the Central Bank of Libya's supervision of commercial banks and oversight of their activities. And with reference to Circular Letter No. (2012/116) issued on 29/4/2012, regarding the planning of commercial banks' authority to execute Egyptian transfers requested by national companies operating in the insurance sector, for settling financial obligations arising from their foreign transactions, in accordance with the controls and procedures governing external transfers issued for this purpose. And to Circular Letter No. (2013/2) issued on 10/2/2012, regarding the addition of certain controls and the exemption of some entities, including insurance companies, from the provisions contained in the decision of the Governor of the Central Bank of Libya No. (1) of 2013, regarding the regulation of foreign currency transactions and specifying the authority to execute external transfers for various purposes, promulgated via Circular Letter No. (1) of 2013 issued on 2/1/2013. And within the framework of regulating the authority to execute external transfers for various purposes, we inform you of the issuance of Central Bank of Libya instructions subjecting foreign currency transfer requests submitted by insurance companies to cover obligations arising from their foreign transactions in the insurance and reinsurance sector, to prior approval by the Banking and Currency Supervision Department at the Central Bank of Libya. Such transfer requests shall be routed through the bank with which the insurance company transacts, after collecting the necessary data and supporting them with all required documents according to the applicable controls, which include in particular the following:

  1. Approval from the Insurance Supervision and Control Authority for all transfers requested by the company regarding insurance and reinsurance items, item-by-item, via a letter issued for this purpose.
  2. A letter issued by the requesting company and endorsed by its authorized signatories, stating the purpose of the transfer, the amount to be transferred, and the foreign beneficiary.
  3. Invoices or financial claims indicating the purpose of the transfer, approved by the Libyan Embassy abroad or the legally authorized entity under which the document was established.
  4. The company shall deal with only one commercial bank managing its accounts for the purpose of settling financial obligations arising from its foreign transactions.
  5. An Egyptian account statement for the requesting company.

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

Abdelhafez Masoud Darbel Manager of the Banking and Currency Supervision Department / Acting

To: The Governor To: The Deputy Governor of Accounting To: The Undersecretary of the Ministry of Economy and Trade To: The Chairman of the Administrative Committee - Insurance Supervision and Control Authority To: The Chairman of the Foreign Accounts Coverage Committee at the Central Bank of Libya To: The Manager of the Accounts Department - Central Bank of Libya To: The Manager of Information and Settlements Department at the Central Bank of Libya To: The Manager of Media Operations Department - Central Bank of Libya To: The Manager of Legal Affairs Department - Central Bank of Libya To: Branches of the Central Bank of Libya (Benghazi - Sabha - Sirte) To: Departments and Units within the Apparatus (Audit - Compliance) To: The Data and Statistics Department To: The Media Follow-up and Compliance Monitoring Department W.M. / Abdelmajid

www.cbl.gov.ly, swift code:CBLJLYLX, +218 21 444 1488 : Fax, +218 21 333 3591: Phone

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