Compliance Guidelines:

Regulatory Bodies in Libya

In Libya, the regulatory and supervisory framework for anti-money laundering (AML) and combating the financing of terrorism (CFT) is managed by the following entities.

Central Bank of Libya (CBL)

The CBL plays a pivotal role in setting monetary policy and regulating the financial sector. In the context of AML/CFT, the CBL is responsible for ensuring that banks and financial institutions under its supervision comply with relevant laws and regulations.

Financial Information Unit (FIU) within the Central Bank

This unit is dedicated to handling money laundering operations. It receives reports on suspicious transactions from financial, commercial, and economic institutions. The FIU can exchange information on suspicious AML cases with its counterparts in other countries based on international conventions or reciprocity.

Law No. (2) Of 2005 On Anti-Money Laundering

Declaring the Origin of Funds Entering the State

• The Central Bank sets a limit on cash amounts entering the country without declaration. Amounts above this limit must be declared.

Financial Information Unit

• A “Financial Information Unit” will be established within the Central Bank to handle money laundering issues.
• Reports on suspicious transactions should be sent to this unit.
• The Unit can exchange information internationally based on treaties or reciprocity.
• Every bank in the State must establish an “Anti-Money Laundering Information Subunit” to monitor transactions and report suspicious activities to the Financial Information Unit.
• The Central Bank’s governor will determine the organization, competences, and procedures of these units.

Role of Financial Information Unit

• The Unit informs the governor after studying any referred cases and may notify competent authorities if needed.

National Anti-Money Laundering Committee

• A “National Anti-Money Laundering Committee” is established, chaired by the governor of the Central Bank or his deputy, and includes representatives from various state entities.

Competences of the Committee

• The Committee will propose anti-money laundering regulations, facilitate information exchange, draft internal regulations, represent the State internationally, prepare reporting templates, and have any other competences assigned by the Central Bank’s board.

Establishing Appropriate Anti-Money Laundering Mechanisms

• Entities involved in licensing or authorizing financial institutions should ensure compliance with anti-money laundering rules and report suspicious cases to the Financial Information Unit.

Respecting the Confidentiality of Information

• Entities must keep acquired information confidential unless required for investigations or legal actions related to money laundering.

Anti-Money Laundering Judicial Cooperation with Other Countries

• The Public Prosecutor may assist foreign judicial entities in tracking, freezing, or retaining funds tied to money laundering based on agreements or reciprocity.

Executive Regulation of the Law, and the Directives and Publications issued in accordance therewith

• The executive regulation of this law will be issued based on the proposal of the National Committee and the Central Bank’s governor. The governor will be responsible for any related directives or publications.

References

• DCAF – Geneva Centre For Security Sector Governance
• Central Bank of Libya