Libyan Arab Jamahiriya Cracks Down on Financial Crime with Tough New Laws
Tackling Money-Laundering with International Best Practices
Libya’s legislature has taken a significant step in combating money-laundering by enacting a new law that builds upon earlier efforts. The legislation aims to tackle this global scourge and prevent the misuse of financial systems.
Key Provisions of the New Law
- Makes it a crime to launder money derived from any offense, as well as related activities such as revealing information about individuals suspected of involvement in money-laundering operations
- Warns or alerts those under suspicion of potential arrest
- Establishes a “financial information unit” at the Central Bank of Libya and sub-units at other commercial banks to monitor and verify suspected transactions
National Committee on Combating Money-Laundering
A National Committee on Combating Money-Laundering will be set up under the chairmanship of the Governor of the Central Bank or his deputy. The committee will comprise representatives from various ministries and authorities, including:
- Finance
- Foreign Affairs
- Economic Affairs
- Justice
- Public Security
- Customs
- Taxation
The primary objective of the committee is to develop strategies for combating money-laundering, suggesting necessary actions to tackle this issue.
International Cooperation
The committee will work closely with international partners to exchange information, investigate, and implement orders and sentences in accordance with global agreements and the principle of reciprocity. This cooperation is expected to be operational by May 2005.
Measures to Combat Money-Laundering
The law also includes measures such as:
- Freezing assets linked to money-laundering activities
- Seizing assets linked to money-laundering activities
- Confiscating assets linked to money-laundering activities
Libya’s move comes at a time when countries worldwide are stepping up efforts to combat financial crime and protect their economies from illegal activities.