Financial Crime World

Libyan Arab Jamahiriya Introduces Tougher Anti-Money Laundering Laws

The Libyan Arab Jamahiriya government has recently passed a new law aimed at strengthening its anti-money laundering (AML) regime, as part of its efforts to comply with international standards and best practices in the fight against financial crimes.

Background

The new law builds on earlier initiatives, including Law No. 7 of 1990, which criminalized money laundering related to drug trafficking and psychotropic substances. The previous law took a narrower approach by only focusing on money laundering operations resulting from specific crimes.

Key Provisions

The new law, enacted as Law No. 2 of 2005, takes a broader approach by criminalizing money laundering operations resulting from any crime, including:

  • Money laundering operations
  • Disclosing information about individuals suspected of involvement in money laundering
  • Other related acts

The legislation also establishes:

  • A Financial Information Unit within the Central Bank of Libya to monitor suspicious transactions and verify attempts at money laundering
  • Sub-units in other commercial banks to support the unit’s efforts
  • A National Committee on Combating Money Laundering, comprising representatives from various government agencies, to develop strategies and implementation mechanisms to combat money laundering

Implementation

The committee is expected to begin operations in May 2005. The law includes measures aimed at:

  • Freezing, seizing, and confiscating assets linked to money laundering
  • Cooperating with other countries on information exchange, investigation, and enforcement of orders and sentences
  • Applying the principle of reciprocity in the implementation of international, regional, and bilateral agreements

Conclusion

These latest developments demonstrate Libya’s commitment to combating financial crimes and its efforts to align its AML laws with international standards. The new law is a significant step forward in the country’s fight against money laundering and terrorism financing.