Libyan Credit Information Center

Regulatory Regulation for the Credit Inquiry System

November 2023

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Chapter One: Definitions

Article One

Words and terms shall have the meanings indicated next to them unless context indicates otherwise.

• The Bank: Central Bank of Libya (CBLib)
• The Center: Libyan Credit Information Center (LCIC)
• Credit Provider: Whether a bank, commercial specialist, or financial company specializing in granting financing.
• Member: Natural or legal persons who provide or request credit information.
• Borrower (Customer): A natural or legal person who has obtained, or wishes to obtain, direct or indirect financing from a member.
• Guarantor (Personal): A natural or legal person who provides a personal guarantee for financing granted to the borrower.
• Related Parties: Natural or legal persons linked to the borrower by a financial relationship that affects their credit assessment.
• Credit Parties: Data and information related to financing granted to the borrower, including the volume of financing obtained by the borrower, repayment due dates, and details of whether the borrower has fulfilled repayments. It also includes basic information about the borrower, as well as data and information related to the guarantor and related parties, and any other data or information requested by the Center.
• Credit Information: Data or information provided by the Center to its affiliated members regarding credit parties, in the form determined by the Center.
• Credit Report: An electronic record containing all information relevant to a specific borrower, registered and maintained by the Center. It consists of several main components: basic data, credit data, relationship data, guarantee data, legal proceedings data, and other relevant data as listed in the Format File Input form prepared for this purpose.
• Credit Register: The electronic service provided by the Libyan Credit Information Center to its affiliated members, enabling authorized users to access and view credit information regarding borrowers in the database.
• Credit Inquiry: A natural person working at the data provider, authorized to use the system and conduct credit inquiries, access and obtain credit reports, or enter, update, correct credit data for borrowers, or extract any type of required report from the Credit Inquiry System.
• Authorized User: The assessment conducted by the Center, which relies on a set of indicators to measure the borrower's ability to repay the financing requested from them.
• Credit Assessment: An electronic system operated by the Libyan Credit Information Center to collect and process credit data for borrowers, updating it in a central database provided by the Center to its affiliated members through Credit Inquiry and in the form of credit reports or other added services.
• Credit Inquiry System: The specifications set by the Center, including input file format specifications, communication means, computer devices, systems, applications, components, software, technical operations, identity verification procedures, transmission settings, and virus/security checks.
• Data Provider: A group of institutions and sectors representing different data sources used by the Center to improve the quality and accuracy of credit reports, including but not limited to:
  1. Creditors: Including institutions providing financing to micro, small, and medium enterprises (MSMEs), microfinance institutions, trade finance companies, and real estate investment companies.
  2. Institutions that collect consumer information such as telecommunications and electricity companies.
  3. Identity databases such as the civil registry.

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Chapter Two: Scope of Application

Article Two

1. These bylaws apply to all financial institutions granting financing and subject to the Banks Law No. (1) of 2005, amended by Law No. 46 of 2012.
2. These bylaws apply to all financing exceeding 1,000 Libyan Dinars or its equivalent.
3. Regarding joint financing, the Center must be provided with joint financing data by the member managing the financing (financing manager) only.

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Chapter Three: Objectives of the Bylaws

Article Three

These bylaws aim to achieve the following:

1. Regulate the relationship between the Center and its affiliated members in the Credit Inquiry System, as well as borrowers and all related parties, and define the rights and obligations of each party.
2. Establish a credit register and central database to collect data on credit parties, verify their accuracy, issue credit reports and other added services to mitigate risks associated with granting financing.
3. Establish the supervisory and regulatory powers of the Central Bank to limit credit risks.
4. Ensure the integrity of the Credit Inquiry System to mitigate potential risks, thereby maintaining financial stability.

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Chapter Four: Validity and Purposes

Article Four

Validity: The Center operates under the trade name "Libyan Credit Information Center", established by a decision of the Governor of the Central Bank of Libya No. (48) of 2009, aiming to collect data and information on credit parties in accordance with the issued regulations, conditions, and terms.

Article Five

Purposes of the Center: The primary purpose of the Libyan Credit Information Center is to collect, store, protect, analyze, classify credit data, and prepare credit reports regarding them, providing members with requested services as follows:

1. Receive credit data for borrowers, process, store, analyze, classify, and present it to customers and members upon request in the form of a credit report or other added services.
2. Provide data and information related to borrowers' financial obligations and debts, including all types of financing.
3. Conclude contracts with Center members ensuring the terms and conditions governing data receipt from members and providing credit reports.
4. Provide customers with their specific credit reports and members upon request, according to the terms and conditions in these bylaws.
5. Receive complaints and objections from customers and members, follow up on them, and provide necessary clarifications.
6. Use credit information and data to prepare statistics and studies that do not reveal the identity of the owners of this information and data.

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Chapter Five: Database Rules

Article Six

It is an electronic database containing all credit records for borrowers, including the information and data received by the Center from its affiliated members, which the Center has collected, processed, analyzed, and stored. The database includes:

1. Basic information indicating borrower identity: name, address, commercial registry number, national ID, and specific bank code, along with all necessary information as submitted by data providers and members to indicate borrower identity.
2. Details of financing obtained by the customer as submitted to the Center, requiring periodic updates.
3. Details of overdue and distressed debts declared by members regarding their customers, based on the databases of their internal systems (such as the banking system).

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Chapter Six: Retention of Information in the Credit Inquiry System

Article Seven

The Center shall not retain any credit information regarding borrowers' accounts that may have a negative impact on granting financing to the customer, after ten (10) years from the date of closing those credit accounts or from the date when such accounts have returned to their normal status.

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Chapter Seven: Credit Register

Article Eight

1. The credit register is prepared by the Center and contains a set of data and information for borrowers, where the credit register is created based on credit data from members affiliated to the Center to be processed, analyzed, classified, and stored subsequently.
2. The Center must retain information contained in the credit register and rely on it when preparing credit reports for borrowers.
3. The credit register includes the following information and data:
   1. Borrower's name, ID number, details, place of residence, business location, income data, social status, and other personal data registered with affiliated members. For legal persons: business license, commercial registry number, specific bank code, and other relevant information as registered with Center members.
   2. Data related to all financing granted to the borrower, due dates, rulings, terms, guarantees, repayment mechanism, and customer's compliance with debts.
   3. Any credit-related court lawsuits filed against the borrower and issued rulings regarding them.
   4. Any bankruptcy, liquidation, or dissolution lawsuits filed against the borrower and issued rulings regarding them.
   5. Credit inquiries conducted on the borrower, including the name and activity of the inquirer, date, and inquiry details.
   6. Credit classification of the borrower and any other credit-related information affecting customer's creditworthiness.
   7. Data of the institution providing the information, data, nature of its activity, and address.

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Chapter Eight: Uses of Credit Reports and Information

Article Nine

1. Affiliated members are limited to using Center services for the following purposes:
   1. Assessing a customer's, guarantor's, or related party's credit status, whether previously financed by the member or new applicants for financing.
   2. Executing self-inquiry requests submitted by the customer.
   3. Reviewing the credit portfolio and monitoring credit risks.
   4. Assisting in evaluating credit risks, making financing grant decisions, and providing banking and financial services.
   5. Reviewing, changing terms, rescheduling, or renewing financing.
   6. Approving the issuance of checkbooks.
   7. Verifying and reviewing personal and credit data for accepting bank account applications.
   8. Any other purposes approved by the Central Bank of Libya.
2. The Center has the right to request from an affiliated member documents and evidence proving the request for credit information, as deemed appropriate in each case.
3. Credit information shall not be requested for purposes other than those stipulated in paragraph (1) of this article. The Governor may instruct the Center to provide credit information to requesting entities, in accordance with prevailing legislation and prescribed requirements.

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Chapter Nine: Center Obligations

Article Ten

The Libyan Credit Information Center manages and operates the Credit Inquiry System, committing to:

1. Collect, store, protect, and provide credit information to its members in the manner it deems appropriate.
2. Maintain confidentiality and privacy of credit information, not publishing or using it for purposes other than those stipulated in these bylaws.
3. Prepare electronic records containing all credit data and related information about credit parties.
4. Establish necessary rules and procedures for operating the Credit Inquiry System, create related auxiliary systems, and develop contingency plans to ensure operational continuity.
5. Determine system operating hours and provide necessary support services to members.
6. Specify data required from affiliated members, and submission deadlines.
7. Determine technical specifications for devices, equipment, systems that members must meet to connect with the Credit Inquiry System, and establish IT security rules, cybersecurity procedures, and take necessary actions to implement them.
8. Notify affiliated members of decisions by the Central Bank of Libya regarding rules, procedures, and policies for the Credit Inquiry System.
9. Establish a mechanism to receive customer complaints, and procedures for adjudicating them.
10. Make necessary efforts to ensure credit data is accurate, complete, consistent, and updated periodically without the Center being liable for data provided by members.
11. Make necessary efforts to provide and exchange credit reports with members during system operating hours, without the Center being liable for non-expected or force majeure circumstances affecting exchange completion.

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Chapter Ten: Center Membership, Member Obligations and Responsibilities

Article Eleven

Membership: Membership in the Center is mandatory for all commercial banks, specialized institutions, and financing entities operating in Libya. Each member must arrange its membership status within the timeframe specified by the Center's management.

Member Obligations: Members commit to:

1. Provide the Center with credit data for all existing financing (direct or indirect) within the first ten (10) days of each month, according to Article 80 of the Banks Law and in the form, mechanism, and means specified by the Center, retaining the right to change these procedures as deemed appropriate, provided members are notified. Members must adapt their internal systems and operations within one month of notification to meet Credit Inquiry System requirements.
2. Provide the Center with credit data for financing subject to changes requiring notification within twenty-four (24) hours of actual occurrence at the member, whether direct or indirect financing, including:
   1. All new financing.
   2. Reclassified financing.
   3. Amounts due after the due date if unpaid by the customer.
   4. Due and distressed amounts for customers upon repayment.
   5. Repayment updates if the customer pays after the due date, or both simultaneously.
3. Verify data accuracy and take necessary measures to secure transmission to the Center.
4. Notify the Center of any legal proceedings taken against customers within one month of the ruling issuance.
5. Maintain confidentiality of credit information, not publishing or using it for purposes other than stipulated in these bylaws.
6. Comply with dispute resolution procedures, customer complaints, and objections regarding data accuracy per Article 14.
7. Maintain a database of complaints and their inspection results.
8. Pay due fees, including membership fees and service/product fees issued by the Governor's decision.
9. Adhere to technical specifications for the Credit Inquiry System.
10. Apply appropriate internal control measures to prevent unauthorized access or use of the system.
11. Notify the Center of any changes to authorized user lists.
12. Notify the Center of any system operation defects or deficiencies.

Member Responsibilities: Members are directly responsible for:

1. Accuracy, completeness, and updating of data provided to the Center, and notifying the Center of changes.
2. Disputes arising in court from credit data they provide to the Center.
3. Use of the Credit Inquiry System by their affiliated and authorized employees.
4. Losses or damages incurred by the Central Bank of Libya due to non-compliance with operational rules, regulations, and procedures for the Credit Inquiry System stipulated in these bylaws and related circulars/instructions.

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Chapter Eleven: Customer Rights

Article Twelve

1. The customer has the right to obtain a copy of the credit report regarding them, subject to paying the financial consideration determined by the Governor's decision.
2. The customer has the right to object to any incorrect information in the credit report regarding them.
3. The customer may file an objection to the member who provided the disputed information, supported by supporting documents, and adjudication follows procedures stipulated in Article 14.

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Chapter Twelve: Correction of Errors

Article Thirteen

1. The member must review all error records extracted from the Credit Inquiry System due to rejected data, examine errors, and take necessary corrective actions and resubmit within five (5) working days from receiving the register from the Center.
2. If a member discovers errors in data sent to the Credit Inquiry System, they must correct them directly in their internal system and send corrected information to the Center's system within five (5) working days from discovery.
3. If a customer requests the member to correct information in their credit report, the member must study the request and begin correcting errors (if any) in their internal system, then send them to the Center's system within five (5) working days.

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Chapter Thirteen: Regulatory Procedures

Article Fourteen

Dispute Resolution:

1. If a dispute arises regarding credit information concerning a credit party, the member must follow these procedures:
   1. Receive the objection from the concerned party and prove the dispute status regarding the disputed credit information.
   2. Notify the Center of the objection, specifying the concerned party and disputed credit information.
   3. Conduct necessary investigations and notify the Center of investigation results, correcting/completing/updating the disputed information if the objection is validated, within a maximum of fifteen (15) days from objection submission and supporting documents.
2. If the member fails to correct, complete, or update the information within the stipulated period in paragraph (3), the concerned party may resort to the Center to prove the status. The Center must investigate the objection and correct/complete/update the information if validated, within a maximum of fifteen (15) days from proving the status to it.
3. If the Center fails to correct, complete, or update the information within the stipulated period in the previous paragraph, the concerned party may appeal to the Banking and Monetary Supervision Department, requesting necessary actions.
4. Members must comply with the Center's decisions regarding submitted objections, and the Center and members must comply with the Governor's procedures regarding filed appeals.

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Chapter Fourteen: Technical Procedures

Article Fifteen

Data and Information Management and Security:

1. The Center and its affiliated members must make every effort to ensure unauthorized access to credit data/information or other stored/processed data between related parties, by taking the following measures:
   1. Establish information system security policies.
   2. Establish specific policies and procedures for system interaction and access.
   3. Issue other regulations and instructions related to data and information management.
2. The Center and members must take necessary measures to prevent loss of data/information, prepare backups, and store them in secure locations.
3. The Center determines work policies related to information management and security, and members must comply with its decisions in this regard.

IT:

1. Members access the Credit Information and Inquiry System via available communication channels provided by the Center, according to specified procedures and policies.
2. The Central Bank of Libya determines security technologies related to credit information privacy and confidentiality, and access/usage procedures for the Credit Inquiry System.
3. Members must provide all modern devices, software, and technical means with necessary maintenance for efficient electronic connection to the Credit Inquiry System, ensuring compatibility.
4. Each member must formulate contingency plans to ensure system continuity and take necessary implementation actions, in accordance with Central Bank policies and instructions.

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Chapter Fourteen: Final Provisions

Article Sixteen

1. The Central Bank of Libya is responsible for inspecting and supervising each member at least once a year to ensure compliance with these bylaws, circulars, and instructions.
2. The Central Bank may inspect and audit any member at any time if evidence indicates non-compliance with prescribed rules, regulations, procedures, and policies.
3. The Central Bank exercises its inspection, supervision, and audit duties in accordance with the Banks Law, decisions, circulars, instructions issued thereunder, and its own rules/policies for operating, using, supervising, and monitoring the Credit Inquiry System.
4. Members must provide all facilities and information requested by the Central Bank in its supervision, inspection, and audit of members regarding the Credit Inquiry System.

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Chapter Fifteen: Violations and Penalties

Article Seventeen

The following are considered violations subject to the provisions of Article 114 of the Banks Law:

1. Failure to maintain confidentiality of credit information.
2. Using credit information for unauthorized purposes or contrary to these bylaws.
3. Member's delay in providing or updating credit data for any customer within the period stipulated in Article 80 of the Banks Law.
4. Member's failure to correct discovered errors in credit data immediately upon notification, per Article 14(2) of these bylaws.
5. Member's non-compliance with rules, policies, and procedures for operating, using, and interacting with the Credit Inquiry System.
6. Delay in paying membership fees to the Center and service fees for provided services.
7. Any other violation of these bylaws, circulars, and instructions issued thereunder.