Central Bank of Libya Circular Letter No. 117/2017

Central Bank of Libya

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

Reference: 804/CBL

Circular Letter No. (117/2017)

Date: 13 Ramadan 1438 AH

Corresponding: June 08, 2017 AD ...

To: General Managers of Commercial Banks

To: Chairmen of Interim Administrative Committees of Commercial Banks

To: General Manager - Libyan Foreign Bank

Greetings...

Based on the provisions of Law No. (1) of 2005 regarding Banks, and its amendments, and on the supervisory and regulatory role exercised by the Central Bank of Libya over commercial banks in accordance with the law's provisions.

We inform you of the issuance of instructions by the Central Bank of Libya that, effective July 01, 2017, implementation will commence for the new mechanism regarding Documentary Credit coverage. Specifically, after your banks obtain the Central Bank of Libya's approval for coverage requests through the Committee for Coverage of Banks' Obligations with Correspondents Abroad, the approved amounts will be retained in your banks' accounts at the Central Bank of Libya. Your banks will proceed to open documentary credits immediately upon receiving addition notifications from the Central Bank of Libya for your foreign currency accounts. Amounts due on these credits during document processing will be transferred by submitting coverage requests through the dedicated system, provided that the SWIFT message for opening the documentary credit and the payment request message from the paying bank required to be covered are uploaded to the system.

Accordingly, you are requested to communicate the subject matter with due attention and comply with the instructions issued by the Central Bank of Libya in this regard.

Peace, mercy of God and blessings be upon you,

Dr. Mokhtar Al-Adawi Al-Tawil
Director, Banking and Currency Supervision Department

Prepared by / For the record:

Director, Banking Operations Department at the Central Bank of Libya
Director, Accounts Department at the Central Bank of Libya
Chairman, Committee for Coverage of Banks' Accounts with Correspondents Abroad at the Central Bank of Libya
Eng. Dara F - Eng. Aruj Central Bank of Libya (Saiqa – Benghazi – Sirte)
Eng. Latif - Director, Banking and Currency Supervision Department for Office Supervision and Compliance Follow-up
Eng. Najib - Deputy Director, Banking and Currency Supervision Department for Field Supervision, Surveys, and Policies
Eng. Wassem - Deputy Director, Banking and Currency Supervision Department for Compliance in Commercial Banks. For follow-up
Eng. Faqih - Banking Follow-up and Compliance Follow-up

R/ Al-Shaibani / 6 Circular Letters 117/2017

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