LIBYAN ARAB JAMAHIRIYA - AML Guidelines Issued for Small Businesses

The Libyan Foreign Bank has recently announced new guidelines aimed at reducing the risk of non-compliance with anti-money laundering (AML) requirements, regulations, and instructions. This move comes as part of efforts to combat financial crimes and protect the country’s banking system.

Background

The guidelines are designed to adhere to international standards and recommendations, including the Liberation Money Laundering Law 1013, which addresses anti-money laundering, the financing of terrorism, and combating financial crimes.

Key Requirements

• Small businesses operating in Libya will be required to comply with a range of regulations.
• The Compliance Unit at the Libyan Foreign Bank plays a key role in implementing these guidelines.
• The unit is responsible for:
  • Managing technical analysis
  • Updating information systems to monitor customer accounts and employees
  • Providing consultations, awareness, and oversight processes concerning financial crimes

Policy and Procedures

• The Compliance Unit determines policy and assembles tasks that include:
  • Examining all clients and transactions against blocklists (local and international) when deciding on a customer’s request to open an account or regularly throughout the relationship.
  • Studying cases of reporting on suspicious transactions, which requires all employees to report to the compliance unit.

Reporting Suspicious Transactions

• The guidelines require the design and development of appropriate actions to report suspicious transactions through a compliance officer to combat money laundering and the financing of terrorism.
• A mechanical system will be employed to distinguish and determine out-of-ordinary patterns of account activity when compared to known customers.

Employee Training

• The Bank has developed a comprehensive training program for all employees to train them on combating money laundering or financing terrorism, and the legal risk that affects the bank or may constitute personal responsibility in any case of failure.

Prohibitions

• The policy includes multiple prohibitions, including:
  • Prohibitions regarding opening accounts for anonymous persons.
  • Restrictions dealing with banks that have no material attendance (such as “shell banks”).

Conclusion

The new guidelines aim to ensure small businesses operating in Libya comply with AML requirements and regulations, thereby reducing the risk of financial crimes. The Libyan Foreign Bank’s efforts demonstrate its commitment to combating money laundering and financing terrorism, while also protecting the country’s banking system.