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Libya: fintech & payments regulation

Regulated

Libya fintech & payments: CBL centralized licensing under 2005 Law; strict FX controls

Lead regulator:
Central Bank of Libya (CBL)
Key law:
Law No. 1 of 2005
Last updated:
2026-07-12

The Central Bank of Libya (CBL) exercises centralized supervision over all payment service providers, banks, and financial institutions under the framework of Law No. 1 of 2005. Recent circulars in 2024 have established specific licensing, capital, and operational requirements for payment institutions, SMS-based payments, and local payment networks.

The regulatory environment is characterized by strict foreign exchange controls and mandatory prior approvals for new products, remittances, and card issuances. While the CBL is actively formalizing the fintech and payments sector through detailed circulars, the broader legal framework remains anchored in older statutes, with recent updates focusing on compliance, AML/CFT, and technical interoperability.

Foreign currency transactions are heavily regulated, with specific caps and designated channels for personal, medical, and educational expenses. The CBL mandates the use of national infrastructure, such as the Libyan National Payment Scheme, and requires all payment service providers to maintain significant capital buffers and robust cybersecurity protocols.

Who regulates

  • Central Bank of Libya (CBL)

    Primary supervisor for banking, payments, and financial institutions; issues binding circulars and licenses.

    [1][2][3][4][5][6][7][8][9]

Core laws & rules

  • Law No. 1 of 2005 (2005)

    The primary banking law establishing the CBL's authority, licensing requirements, and operational standards for financial institutions.

    [7]

  • Law No. 9 of 2010 (2010)

    Consolidates investment statutes, establishing frameworks for national and foreign capital investment and licensing.

    [10]

Licensing & registration

  • Payment Institutions

    Mandatory licensing for all payment service providers and POS terminal operators, requiring fit-and-proper assessments and robust AML/CFT compliance. Capital: 500,000.00 Libyan Dinars Timeline: Circular 6/2024 and Circular 7/2024 (2024)

    [4][5][6]

  • Banks and Financial Companies

    Establishment or operation requires approval under Article 15 of CBL Law No. 1 of 2005 and Board Decision No. 15 of 2024. Timeline: Circular 5/2024 (2024)

    [7]

Restrictions & warnings

  • Strict foreign exchange controls apply, including annual caps of $20,000 for personal expenses and $15,000 for overseas studies, with dedicated sub-accounts for heads of households.

    [11][12]

  • Banks must obtain prior CBL approval before launching any new banking product or service, detailing the product name, target customers, and operational plan.

    [13]

  • Salary-backed purchase limits for electronic payments are capped at 60% of net salary after deductions, requiring a minimum six-month salary history.

    [1]

Direction of travel

  • The CBL is actively modernizing the payments landscape through 2024 circulars, focusing on SMS-based payments, local payment networks, and centralized licensing via CBLKEY, indicating a move towards formalized digital infrastructure.

    [3][8][6]

Sources

  1. Central Bank of Libya Circular 20/2024: Guidelines for Issuing Salary-Based Purchase Limits · 2024-12-02
  2. Circular 8/2024 · 2024-06-24
  3. Circular No. 12 of 2024: Guidelines on SMS-Based Payment Services · 2024-06-24
  4. Circular No. 6/2024 · 2024-06-24
  5. Central Bank of Libya Circular 7/2024 · 2024-06-24
  6. Circular No. 9/2024: Implementation of AML/CFT Provisions and Visa-Mastercard Payment Services · 2024-06-24
  7. Circular No. 5/2024 · 2024-05-16
  8. Local Payment Network Regulation · 2024-01-10
  9. Regulatory Rules of the Libyan National Payment Scheme · 2024-01-10
  10. Law No. 9 of 2010 Regarding Investment Encouragement · 2022-06-06
  11. Central Bank of Libya Circular 6/2021 on Foreign Currency Sales for Personal, Study, and Medical Purposes · 2023-07-12
  12. Central Bank of Libya Circular No. 3/2017 on the Sale of Foreign Currency for Personal Purposes to Libyan Heads of Households · 2023-07-12
  13. Circular 24/2023 · 2023-11-09

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This guide is compiled automatically from 13 primary-source documents published by Libya's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.