Libyan Arab Jamahiriya Tackles Money Laundering with Stringent New Legislation
Introduction
As part of its efforts to combat money laundering, Libya has enacted a new law aimed at preventing and detecting financial crimes. This legislation is a significant step forward in the country’s fight against money laundering.
Key Provisions of the Law
- Criminalization of Money Laundering Operations: The law criminalizes money laundering operations resulting from any crime, including drug trafficking, psychotropic substances-related offenses, and other financial frauds.
- Protection of Suspects’ Information: It also makes it illegal to release information about individuals suspected of involvement in money laundering activities, warning them or drawing their attention to possible arrest.
Financial Monitoring and Reporting
- Establishment of Financial Information Unit: The Central Bank of Libya has established a “financial information unit” within its premises, as well as sub-units in other commercial banks. This unit will be responsible for verifying attempts at money laundering and reporting suspicious activity to the authorities.
- Verification of Transactions: The unit will monitor suspected transactions and report any suspicious activity to the authorities.
National Committee on Combating Money Laundering
- Chairmanship: The National Committee is chaired by the Governor of the Central Bank or his deputy.
- Members: Members of the committee include representatives from the Bank, Foreign Affairs, Economic Affairs, Financial Affairs, Justice, Public Security, Customs, and Tax Authorities.
- Objective: The primary objective of the committee is to develop strategies and implementation mechanisms for dealing with money laundering operations and advising on necessary actions to combat them.
Additional Measures
- Freezing, Seizing, and Confiscating Illegal Funds: The law includes measures such as freezing, seizing, and confiscating illegal funds.
- International Cooperation: The law also sets out measures for cooperation with other countries in the exchange of information, investigation, and implementation of orders and sentences under international, regional, and bilateral agreements. The principle of reciprocity will be applied.
Conclusion
Libya’s efforts to combat money laundering are seen as a significant development in the country’s financial sector, aiming to ensure transparency and prevent illicit activities.