Libyan Arab Jamahiriya’s New Law targeting Money Laundering: Penalties and Key Provisions

The Libyan Arab Jamahiriya government has taken substantial steps against financial crimes by adopting a new anti-money laundering law. This law aims to enhance the regulatory framework and impose penalties on individuals and institutions involved in money laundering.

Key Provisions of the New Law

1. Definition of Money Laundering Terms: Article 1 defines essential terms related to money laundering, including illicit property, freeze or seizure, instrumentalities, and financial institutions.
2. Money Laundering Crimes: Article 2 lists acts considered money laundering crimes, such as disguising the origin of illicit property and any form of complicity. The definition of illicit property also includes funds obtained through crimes mentioned in international conventions.
3. Institutional accountability and Penalties: Article 3 holds financial, commercial, and economic institutions responsible for money laundering, with penalties outlined in Article 4. These include imprisonment, a fine equal to the amount of money laundered, and confiscation of the funds.
4. Individual Penalties: Individuals face imprisonment and a fine equivalent to the amount of laundered money. Accessories to the crime and those aware of the underlying crime but fail to report it face increased penalties.
5. Penalties for money laundering-related crimes: The law covers penalties for related crimes, such as violations of reporting requirements and providing false information to the authorities.
6. Incentives for Reporting Suspected Money Laundering: Individuals reporting suspected money laundering in good faith are exempted from punishment.
7. Financial Information Unit: The new law establishes the Financial Information Unit within the Central Bank to deal with money laundering investigations. The unit is responsible for exchanging information with foreign counterparts and collecting reports on suspicious transactions.
8. National Anti-Money Laundering Committee: The National Anti-Money Laundering Committee was established to propose anti-money laundering regulations, facilitate information exchange, and represent Libya in international forums.
9. Responsibilities of Licensing Entities: All entities responsible for licensing, authorizing, or overseeing financial, commercial, and economic institutions are required to establish anti-money laundering mechanisms and report suspected cases.

Conclusion

The new anti-money laundering law in Libyan Arab Jamahiriya is a significant milestone in the country’s efforts to prevent money laundering and financial crimes. The penalties for individuals and institutions clearly establish consequences for engaging in money laundering activities and strengthen Libya’s commitment to international efforts to combat money laundering and terrorist financing.