Central Bank of Libya

P.O. Box 1103 | Telegram Address: Masaribya - Tripoli, Libya

Reference: I.R.M.N./1055/18 Periodic Letter (R.M.N. No. 132/2017) Date: 16 Shawwal 1438 AH Gregorian Date: July 10, 2017 AD

To: The General Managers of Banks To: The Chairmen of the Interim Administrative Committees of Banks To: The General Manager - Libyan Foreign Bank To: The General Manager - Ma'amalat Financial Services Company

With greetings...

Subject: Decision of the Central Sharia Supervision Authority regarding the Sharia Ruling on the Transaction of Selling (400) Dollars to Libyan Heads of Households

In implementation of the provisions of Law No. (1) of 2005 on Banks, amended by Law No. (46) of 2012, and the supervisory and regulatory role of the Central Bank of Libya under the provisions of the law.

And in addition to the Central Bank of Libya Board of Directors Decision No. (6) of 2013 regarding the establishment of the Central Sharia Supervision Authority.

And to two circulars (R.M.N. Nos. 3, 4) issued on 2017/2/1 and 2017/2/20, regarding the regulations governing the sale of foreign currency allowances for personal purposes to be disbursed to Libyan heads of households.

We inform you of the issuance of the decision by the Central Sharia Supervision Authority at the Central Bank of Libya dated 2017/6/13, regarding the Sharia ruling on the transaction of selling (400) dollars to Libyan heads of households, in which the Authority confirmed the validity of the said transaction according to its governing regulations, as stated in the Central Bank of Libya's circulars issued specifically for this purpose.

And as we refer you to the aforementioned decision, you are requested to take note and be informed thereof, and all Sharia authorities, departments, and specialized units (Compliance, Internal Audit, Sharia Auditing) are to take the necessary actions within their respective jurisdictions regarding any violations or practices contrary to the Central Bank of Libya's instructions.

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

Dr. Mukhtar Al-Hadi Al-Tawil Director of the Banking and Currency Supervision Department

To: Al-Hamata (Department) To: Mu'tadid Al-Jahiz for Islamic Banking Affairs To: Chairman of the Central Sharia Supervision Authority - Central Bank of Libya To: Chairman of the Advisory Committee for Islamic Banking Affairs - Central Bank of Libya To: Director of the Legal Affairs Department - Central Bank of Libya To: The Sharia Experts/Committee Members of the Central Bank of Libya (Seven Directors) To: The Board of Directors at Al-Ma'arif To: The Heads of Sharia Supervision Units and Operating Financial Institutions To: Deputy Director of the Banking and Currency Supervision Department for Collective Supervision and Compliance To: Deputy Director of the Banking and Currency Supervision Department for Collective Supervision, Policies, and Legislation To: Deputy Director of the Banking and Currency Supervision Department for Islamic Banking Affairs Sharia Supervision Judicial Department

M.S. 2017/1 - M.A. Qaysal www.cbl.gov.ly swift code:CBLJLYLX +218 21 444 1488 Fax: +218 21 333 3591 Phone:

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Central Bank of Libya

P.O. Box 1103 | Telegram Address: Masaribya - Tripoli, Libya

Decision of the Central Sharia Supervision Authority regarding the Sharia Ruling on the Transaction of Selling (400) Dollars to Libyan Heads of Households

The Central Sharia Supervision Authority at the Central Bank of Libya, after reviewing the following:

• Law No. (46) of 2012, amending Bank Law No. (1) of 2015,
• Standard No. (3) issued by the Central Bank of Libya for the currency exchange system,
• Central Bank of Libya Circular No. (3) of 2017, regarding the regulations governing the sale of foreign currency for personal purposes to be disbursed to Libyan heads of households, issued on 2017/02/01,
• Central Bank of Libya Circular No. (4) of 2017, regarding instructions related to amending some regulations governing the sale of foreign currency for personal purposes, issued on 2017/02/01,
• And referring to the concerned departments at the Central Bank of Libya and reviewing the adopted working mechanism,
• And the manner in which the Central Bank covers the paid amounts,

Decided as follows:

First: The validity of the said transaction according to its governing regulations, as stated in the Central Bank of Libya's circular and the standard for regulating currency sales, mentioned above.

Second: The validity of this transaction is based on the correctness of government receipt of the sold currency, evidenced by both parties—the citizen and the bank—being able to dispose of and use it, as stated in the currency trade regulations (item No. 3/1/2) of Standard No. (3) issued by the Central Bank of Libya.

Third: Based on the Central Bank of Libya's full coverage of the allocated foreign currency amounts, that funds have been earmarked for this purpose, and that the mechanism adopted to obtain allocated foreign currency amounts via electronic cards has been fulfilled based on

(Decision Seal)

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

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Central Bank of Libya

P.O. Box 1103 | Telegram Address: Masaribya - Tripoli, Libya

Oral reports and field visits, provided there is a contract and cardholders can withdraw their allowances; thus, the citizen's receipt of his allowance via electronic cards is valid and permissible.

Fourth: There is no objection to the heads of households receiving their allowance via various types of remittances, as well as through cash withdrawals if available at banks.

Fifth: Banks must determine the method for citizens to receive their foreign currency entitlements, such that specific forms specify the available method for paying the amount in foreign currency according to the Central Bank of Libya's circulars, leading to the actual ability to use or obtain the amount without doubt or possibility.

Sixth: In application of the aforementioned Article (7) of Bank Law No. (46) of 2012, all Sharia authorities in commercial banks are tasked, within their legally authorized role, with verifying the banks' compliance with Sharia rulings as issued by the Central Sharia Supervision Authority at the Central Bank of Libya, and the soundness of the executive measures taken by banks to implement the central bank's circulars regarding this transaction and others, taking necessary action in case of any violations or practices non-compliant with Sharia rulings.

And Allah is the Best of Helpers (Source of Success)...

Central Sharia Supervision Authority Central Bank of Libya Issued in Tripoli Tuesday, 20 Ramadan 1438 AH Gregorian Date: June 13, 2017

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