Title: Libyan Arab Jamahiriya’s New Anti-Money Laundering Law: Key Points
Background
- The General People’s Congress of Libya’s Arab Jamahiriya passes Law No. (2) of 1373 FPD/2005 AD to combat financial crime and strengthen legal framework.
Key Definitions and Criminalized Activities
- New law defines terms such as illicit property, freeze or seizure, instrumentalities, financial institutions, and other financial, commercial, and economic institutions.
- Money laundering activities are criminalized, including possessing, transferring, or concealing illicit property.
Penalties for Institutions and Individuals
- Financial institutions, including economic entities, face penalties such as fines and confiscation of funds for money laundering.
- Supervisors or employees failing to report suspicious transactions also subject to penalties.
- Financial Information Unit established within Central Bank of Libya for dealing with money laundering operations and coordinating with foreign counterparts.
- Banks required to set up anti-money laundering subunits and report suspicious transactions to the Financial Information Unit.
Role of the National Anti-Money Laundering Committee
- Committee responsible for proposing regulations, facilitating information exchange, and representing the State in international forums.
- Composition, competences, and work procedures to be determined.
Ensuring Compliance with Anti-Money Laundering Rules
- All entities licensing or authorizing financial, commercial, and economic institutions andentrusted with their control and inspection must establish appropriate mechanisms to ensure compliance.
Central Bank of Libya’s Role
- Central Bank to issue anti-money laundering directives and regulations for entities to follow.
- All entities must preserve confidentiality of acquired information and only disclose for investigations, legal actions, and lawsuits.
International Judicial Cooperation
- Law facilitates anti-money laundering judicial cooperation with other countries.
- Allowance for tracking, freezing, or retaining proceeds and instrumentalities based on reciprocal agreements or foreign judicial requests.
- Acknowledgment of foreign court rulings or orders stipulating confiscation of funds, proceeds, or instrumentalities.
Regulation and Publication
- Executive regulation of the law and publications issued to be issued by the General People’s Committee.
- Governor of Central Bank of Libya responsible for issuing necessary publications and directives.
Effective Date
- Law takes effect from its issuance date and to be published in the Legal Register and various media outlets.
commitment to Ethical Business Practices
- Libyan Arab Jamahiriya remains committed to combating financial crime and promoting ethical business practices.