LIBYAN ARAB JAMAHIRIYA: AML Guidelines for Small Businesses Take Center Stage
The Libyan government has taken a significant step to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime by outlining guidelines for small businesses operating in the country. These guidelines aim to ensure that all entities comply with relevant laws and regulations.
Key Roles in AML/CFT Regime
Central Bank of Libya
The Central Bank of Libya plays a crucial role in setting monetary policy and regulating the financial sector, including ensuring banks and financial institutions under its supervision adhere to AML/ CFT requirements.
Financial Information Unit
A Financial Information Unit has been established within the Central Bank to handle money laundering operations. This unit receives reports on suspicious transactions from financial, commercial, and economic institutions and can exchange information with international counterparts based on treaties or reciprocity.
Key Provisions
- Under Law No. 2 of 2005, the Central Bank sets a limit on cash amounts entering the country without declaration.
- Every bank must establish an Anti-Money Laundering Information Subunit to monitor transactions and report suspicious activities to the Financial Information Unit.
National Anti-Money Laundering Committee
The National Anti-Money Laundering Committee has been established, chaired by the governor of the Central Bank or his deputy, and includes representatives from various state entities. The committee is responsible for: + Proposing anti-money laundering regulations + Facilitating information exchange + Drafting internal regulations + Representing the State internationally + Preparing reporting templates + Performing other duties assigned by the Central Bank’s board
Compliance and Confidentiality
- Entities involved in licensing or authorizing financial institutions must ensure compliance with AML rules and report suspicious cases to the Financial Information Unit.
- Confidentiality of acquired information is essential, unless required for investigations or legal actions related to money laundering.
Public Prosecutor
The Public Prosecutor may assist foreign judicial entities in tracking, freezing, or retaining funds tied to money laundering based on agreements or reciprocity.
Conclusion
In conclusion, the Libyan government’s AML guidelines for small businesses aim to strengthen the country’s anti-money laundering and combating the financing of terrorism regime. These guidelines provide a framework for financial institutions and other entities operating in Libya to comply with relevant laws and regulations, thereby contributing to the global fight against money laundering and terrorist financing.