Regulatory Alerts2022-06-07
Central Bank of Libya Circular Letter No. 189 (2017)
The Central Bank of Libya’s Banking and Currency Supervision Department mandates that commercial banks strictly implement Libyan Court of Audit procedures concerning external letters of guarantee. Banks must obtain written audit approval before releasing project guarantees, register all guarantees exclusively within deposits and securities accounts under the Court’s supervision, and renew them whenever concerned authorities request extensions. Commercial banks are directed to immediately adopt these measures to resolve ongoing external guarantee issues and ensure regulatory compliance.
Central Bank of Libya
P.O. Box 1103 - Telegram Address: Misrifiya - Tripoli, Libya
Reference: 804/NMA
Circular Letter No. R.M.N. (2017/189)
Date: 26 Safar 1439 AH Corresponding: 14 November 2017 AD
Gentlemen / General Managers of Banks
Mr. / General Manager - Libyan Foreign Bank
Greetings...
Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and the supervisory and regulatory role exercised by the Central Bank of Libya over commercial banks, in accordance with the law's provisions.
And referring to the letters of guarantee issued by your banks for local companies or authorities contracted with foreign companies, and due to the importance and seriousness of this matter, and the joint efforts of all relevant parties to find solutions for the problem of external letters of guarantee issued at the request of foreign companies,
Therefore, this department confirms the procedures requested by the Libyan Court of Audit, which are as follows:
- No release of guarantees for projects except with the written approval of the Court of Audit.
- No registration of guarantees except in the deposits and securities account, with their summary subject to the Court's supervision.
- Renewal of all guarantees in case the concerned authorities request extension.
In response, you are requested to take the necessary measures regarding what was stated in the procedures requested by the aforementioned Libyan Court of Audit.
Peace, mercy of God and blessings be upon you....
Dr. Mokhtar El Hady Al-Taweel
Director of the Banking and Currency Supervision Department
For the Governor /
For Mr. / Director of Legal Affairs, Central Bank of Libya
For Mr./Dr. Internal Audit Dept (Central Bank of Libya - Benghazi - Sirt)
For Mr. / Director, Main Financial Information Unit, Central Bank of Libya
For Mr./Dr. Financial Operations Management Dept - Misrifiya - Central Bank of Libya
For Mr. / Deputy Director, Banking & Currency Supervision (Compliance/Supervision & Compliance Monitoring)
For Mr. / Deputy Director, Banking & Currency Supervision (Field Supervision, Legislation & Policies)
For Mr. / Heads of Compliance at Commercial Banks (for follow-up)
For Mr. / General Manager, Compliance University
2017/ Circular Letters / Bundle 6