Financial Crime World

Libyan Arab Jamahiriya Takes a Stand Against Money Laundering: A New Law on the Horizon

In its ongoing efforts to combat financial crimes, the Libyan Arab Jamahiriya has taken significant steps towards enacting a new law aimed at preventing money laundering. This development comes as a result of international pressures and the country’s commitment to adhering to global standards in combating money laundering.

A Journey Towards Compliance

The journey towards this milestone began with the passage of Law Number 7 of 1990, which criminalized money laundering resulting from drug trafficking and psychotropic substances-related crimes. This law was enacted in compliance with the United Nations Drug Convention against Illicit Trafficking of Drugs and Psychotropic Substances (1988).

A Landmark Legislation

Fast forward to 2005, when Law Number 2 on Money Laundering came into effect on January 12th. This landmark legislation criminalizes money laundering operations stemming from any crime, as well as other related acts such as releasing information about individuals accused of being involved in money laundering schemes.

Key Provisions

  • Establishes a “financial information unit” within the Central Bank of Libya and sub-units in commercial banks to monitor suspicious transactions and verify potential money laundering attempts.
  • Sets up a National Committee on Combating Money Laundering, chaired by the Governor of the Central Bank or his Deputy.
  • Comprises representatives from various government agencies, including the Bank, Foreign Affairs, Economic Affairs, Financial Affairs, Justice, Public Security, Customs and Tax Authorities.

Objectives

The primary objective of the committee is to develop strategies and implementation mechanisms for combating money laundering operations and recommending necessary actions. Key measures outlined in the law include:

  • Freezing, seizing, and confiscating assets linked to money laundering schemes.
  • Facilitating cooperation with other countries through information exchange, investigation, and enforcement of orders and sentences.

Implementation Timeline

The committee was expected to be fully operational by May 2005, marking a significant milestone in Libya’s efforts to combat financial crimes. With this new law, the Libyan Arab Jamahiriya takes a crucial step towards adhering to international standards and strengthening its efforts to combat money laundering.