Regulatory AlertsLibya: fintech & payments regulation
RegulatedCBL centralizes fintech via Circular 6/2024; strict licensing, no sandbox
- Lead regulator
- Central Bank of Libya (CBL)
- Also involved
- Ministry of Finance (state accounts) · Investment Promotion Authority (foreign capital)
- Core law
- Law No. 1 of 2005 (Central Bank of Libya Law)
- Entry capital
- LYD 500,000 (Payment Institution)
- Approval timeline
- —
- Customer assets
- Custody by licensed banks only
- Data protection
- No specific data protection law identified in sources
- Sandbox
- No
Libya’s fintech and payments landscape is strictly centralized under the Central Bank of Libya (CBL). The regulatory framework has recently consolidated under Circular 6/2024, which establishes comprehensive licensing, governance, and operational requirements for payment institutions. The CBL mandates minimum capital, fit-and-proper assessments, and robust AML/CFT compliance for all payment service providers. There is no separate fintech sandbox; innovation is managed through specific circulars (e.g., SMS payments, salary limits) issued to licensed banks and operators.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Institution License[1] Mandatory licensing under Circular 6/2024 for all payment service providers. | LYD 500,000 | — | Central Bank of Libya |
| E-money & wallet issuance | LicencePayment Institution License Wallet issuance falls under payment institution licensing; SMS payments regulated separately. | LYD 500,000 | — | Central Bank of Libya |
| Domestic money transfer | LicencePayment Institution License[2] Domestic transfers require CBL licensing and compliance with national payment scheme rules. | LYD 500,000 | — | Central Bank of Libya |
| Cross-border remittance | LicencePayment Institution License Cross-border remittances strictly regulated; fast remittances (MoneyGram/WU) require specific branch designation. | LYD 500,000 | — | Central Bank of Libya |
| Agent network | LicencePayment Institution License Agent networks must operate under the licensed payment institution's compliance framework. | LYD 500,000 | — | Central Bank of Libya |
| Open banking / account information | Uncertainverify with regulator No specific open banking framework identified; data sharing governed by general banking secrecy. | — | — | — |
| Foreign-exchange services | LicencePayment Institution License[3] FX services are tightly controlled; personal FX allowances are capped and monitored. | LYD 500,000 | — | Central Bank of Libya |
New — what changed recently
- 2024-06-24Circular No. 6/2024 — Established comprehensive licensing, governance, and operational requirements for payment institutions, including minimum capital and AML/CFT standards.
- 2024-06-24Circular No. 12/2024 — Issued guidelines for SMS-based payment services, mandating technical interoperability and multi-factor authentication.
- 2024-06-24Circular No. 9/2024 — Mandated centralized licensing via CBLKEY and set minimum paid-up capital of LYD 500,000 for payment service providers.[1]
- 2024-06-24Circular 8/2024 — Amended banking regulations, updating capital requirements, licensing procedures, and reporting standards for financial institutions.
Market-entry checklist
- 1Secure CBL Payment LicenseApply for a Payment Institution License under Circular 6/2024 with LYD 500,000 minimum capital.
- 2Register via CBLKEYComplete centralized licensing registration through the CBLKEY system as mandated by Circular 9/2024.
- 3Implement AML/CFT FrameworkEstablish robust AML/CFT compliance programs and fit-and-proper assessments for key personnel.
- 4Comply with National SchemeAdhere to the Regulatory Rules of the Libyan National Payment Scheme for operational standards.
- 5Obtain Prior Product ApprovalSubmit new banking product or service applications to CBL for prior approval under Circular 24/2023.