Financial Crime World

Libyan Arab Jamahiriya - Banking Compliance Regulations Take Center Stage

In a concerted effort to reduce non-compliance risks and protect the reputation of Libyan Arab Jamahiriya’s banking sector, compliance regulations have been implemented with renewed vigor.

Identifying Risks Through Continuous Monitoring

The heart of this initiative lies in identifying risks on a continuous basis through a culture of compliance and internal action policies and procedures. This proactive approach ensures that all employees, stakeholders, and dealers are aware of their roles and responsibilities in preventing violations of regulatory requirements.

Strengthening Compliance Monitoring

The Bank’s organizational structure has been reoriented to prioritize compliance monitoring. An independent unit has been tasked with assessing the risk of non-compliance across all departments. Multiple policies have been initiated by the Board of Directors to regulate staff behavior, including:

  • A charter for professional conduct
  • A policy on reporting improper practices

Responsibilities of the Compliance Unit

According to the approved compliance policy, the compliance unit is responsible for conducting compliance and control tasks to implement regulatory instructions. This includes:

  • Ensuring that bank policies and procedures satisfy legal and regulatory requirements
  • Identifying risks associated with high-risk operations or new products
  • Organizing relationships with regulatory authorities

The unit also provides a safe means of communication for reporting unacceptable behavior, encourages staff to speak up if they witness immoral or illegal activities, and protects employees who report such incidents. Additionally, it requests follow-ups on customer complaints and reports directly to the Compliance Manager, Senior Management, and the Board of Directors.

These measures are aimed at preventing and mitigating legal risks by ensuring that the bank’s procedures comply with local laws, rules, regulations, and international actions. The compliance unit also ensures that regulatory legislation is documented and updated regularly, providing a precise analysis of regulators’ laws and notes received from various authorities.

Promoting Transparency, Accountability, and Integrity

The ultimate goal of these regulations is to promote a culture of transparency, accountability, and integrity within the banking sector, ultimately benefiting customers and contributors alike.