Libyan Arab Jamahiriya: Banks Strive to Comply with Anti-Money Laundering Regulations
In a bid to reduce the risk of non-compliance, Libyan banks are placing significant emphasis on adhering to regulations and instructions aimed at combating financial crimes.
The Liberation Money Laundering Law (1013)
The Libyan Foreign Bank is at the forefront of this effort, with a dedicated unit responsible for managing technical analysis and updating information systems to monitor customer accounts and employee activities. This includes:
- Adhering to United Nations sanctions resolutions
- Following international ban on individuals and entities
- Implementing International Financial Action Committee (FATF) recommendations
Preventing Money Laundering and Terrorism Financing
The compliance unit has set out a series of tasks aimed at preventing money laundering and terrorism financing, including:
- Examining all clients and transactions against local and international blocklists when opening new accounts and regularly throughout the relationship
- Investigating suspicious transaction reports, which require all employees to notify the compliance unit. The unit then reviews documentation and makes decisions on reporting violators to the Libyan Financial Information Unit
- Designing and implementing measures to report suspicious transactions through a dedicated officer
- Employing mechanical systems to identify unusual account activity patterns compared to known customers
- Developing comprehensive training programs for all employees to combat money laundering, terrorism financing, and legal risks that may affect the bank or individuals in cases of failure
Additional Measures
In addition to these measures, the Bank’s policy prohibits opening accounts for anonymous individuals and restricts dealings with banks that lack physical presence, commonly referred to as “shell banks.”
By adhering to these regulations and guidelines, Libyan banks are working to reduce the risk of non-compliance and prevent financial crimes.