Financial Crime World

Libya’s New Struggle Against Money Laundering: A Look at the Latest Legislation

In the Libyan Arab Jamahiriya, Dr. Mustapha Debara, a government representative, presented papers at a recent conference on the international fight against money laundering. His intervention highlighted Libya’s ongoing efforts to counteract this illegal activity.

Overview of Libya’s Anti-Money Laundering Legislation

Libya’s approach to combating financial crimes has evolved significantly. Here’s a brief timeline of the country’s legislative progress in this area:

  1. Law Number 7 of 1990: Enacted to combat drug trafficking and related crimes, including money laundering. This law primarily criminalized money laundering resulting from drug-related offenses.

  2. Law Number 2 of 2005: Came into force on January 12, 2005. This law expanded the criminalization of money laundering to include operations resulting from any crime, and established provisions for related acts, such as disclosing information about suspected individuals.

Enforcing Libya’s New Money Laundering Regulations

To enforce these new regulations, Libya took several steps:

  • Established a “Financial Information Unit” within the Central Bank of Libya, along with sub-units in other commercial banks, to monitor suspicious transactions.
  • Created a National Committee on Combating Money Laundering, headed by the Governor of the Central Bank or his deputy, with representatives from various ministries including Foreign Affairs, Economic Affairs, Financial Affairs, Justice, Public Security, Customs, and Tax Authorities. The primary objective of this committee is to develop strategies and implementation mechanisms to combat money-laundering activities.

Measures against Money Laundering in Libya’s New Law

The new money laundering law in Libya includes several measures for combating money laundering, such as:

  • Freezing, seizures, and confiscation of illicit funds.
  • Provisions for international cooperation in terms of information exchange, investigations, and execution of orders and sentences based on international, regional, and bi-lateral agreements, along with the application of the reciprocity principle.

Libya’s Commitment to Combating Money Laundering

Libya’s commitment to combating money laundering is significant for the global community’s efforts to eradicate financial crimes and promote transparency.