Combating Money Laundering and Financing of Terrorism: Libyan Arab Jamahiriya’s Banking Regulations
The Libyan Foreign Bank has taken significant steps to reduce the risk of non-compliance with anti-money laundering (AML) regulations and instructions, adhering to international standards and recommendations.
Implementing Strict Measures
The bank is committed to implementing policies aimed at combating financial crimes, including money laundering and terrorism financing. The 2013 Money Laundering Law requires the bank to adhere to international sanctions resolutions and bans on individuals and entities.
Compliance Unit Responsibilities
The bank has established a compliance unit responsible for:
- Technical analysis
- Updating information systems
- Monitoring customer accounts and employees
- Providing consultations and awareness training on financial crimes
- Reviewing suspicious transaction reports and making decisions on reporting violations to the Libyan Financial Information Unit
Key Tasks of the Compliance Unit
Some key tasks undertaken by the compliance unit include:
- Examining clients and transactions against local and international blocklists
- Studying suspicious transaction cases
- Designing actions to report suspicious transactions
- Employing a mechanical system to detect unusual account activity
- Developing comprehensive training programs for all employees
AML Policy Prohibitions
The bank’s AML policy includes multiple prohibitions, including:
- Restrictions on opening anonymous accounts
- Dealing with “shell banks” that lack material presence
These prohibitions aim to prevent the misuse of the banking system by individuals and entities engaged in illegal activities.
By implementing these measures, the Libyan Foreign Bank demonstrates its commitment to combating money laundering and financing of terrorism, while adhering to international standards and recommendations.