Central Bank of Libya (CBL)

Overview

The Central Bank of Libya (CBL) is the central bank and primary monetary authority of Libya. Content for this section is being enriched from official sources. The Central Bank of Libya (CBL) in Libya has regulatory functions documented in adjacent sections of this profile.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

مصرف ليبيا المركزي

OVERVIEW

The Central Bank of Libya (CBL) is Libya's central bank, responsible for monetary policy, banking supervision, payment systems management, foreign exchange regulation, and AML/CFT enforcement. However, the CBL operates within a complex political environment marked by competing governance authorities and institutional challenges.

Current Leadership:

• Governor: Naji Mohammed Issa (appointed late 2025)
• ~27 years banking experience, primarily in CBL
• Director of Currency & Banking Supervision Department
• Consensus appointment following political resolution
• [UNVERIFIED: Political governance dispute context]

Establishment Date: 1956 (pre-independence); reorganized post-1969

Headquarters: Tripoli, Libya (disputed governance context — see political division section)

Regulatory Focus: Monetary policy, banking stability, foreign exchange controls, AML/CFT enforcement (amid governance fragmentation).

LEGAL BASIS

Primary Legislation:

• Central Bank of Libya Law — Establishes CBL legal status, mandate, organizational structure
• Banking Law — Governs banking system licensing, prudential regulation, conduct of business
• Foreign Exchange Regulation — Controls currency transactions and cross-border flows
• Law on Money Laundering and Terrorist Financing — AML/CFT framework
• Circular No. 02/2024 — Foreign exchange transaction controls (issued 2024)
• Circular No. 05/2018 — AML/CFT compliance procedures for financial institutions

Regulatory Authority:

• Banking license issuance and supervision
• Monetary policy implementation
• Foreign exchange control and management
• Payment systems regulation
• AML/CFT compliance oversight
• Financial sector stability authority

MONETARY POLICY

Policy Framework:

• Central bank policy interest rate
• Reserve requirement management
• Open market operations through treasury instruments
• Liquidity facility provision
• Foreign exchange intervention authority

Challenges:

Libya's monetary policy operates under significant constraints due to:

• Limited foreign currency reserves
• Dependence on oil export revenues (fluctuating global prices)
• Political fragmentation affecting policy credibility
• Dual central banking institutions (see political division section)
• Inflation pressures from supply disruptions

Objectives:

• Price stability and inflation control
• Financial system soundness
• Support for economic recovery
• Exchange rate management (dinar stabilization)

BANKING SUPERVISION

Supervisory Mandate:

The CBL supervises commercial banks, Islamic (Sharia-compliant) banks, development banks, and other credit institutions licensed to operate in Libya.

Prudential Framework:

• Minimum capital adequacy requirements aligned with international standards
• Loan classification and provisioning rules
• Large exposure and concentration limits
• Related-party transaction restrictions
• Liquidity management standards
• Operational risk controls

Examination & Monitoring:

• On-site bank inspections (conducted when security situation permits)
• Off-site monitoring through regulatory reporting
• Capital adequacy assessments
• Asset quality reviews
• Compliance examinations

Enforcement Authority:

• Administrative penalties and fines
• License suspension or revocation
• Corrective action orders
• Mandatory capital injections
• Appointment of special administrators
• Criminal prosecution authority (shared with law enforcement)

Implementation Challenges:

Dual governance arrangements complicate supervision, with competing central bank institutions claiming authority over segments of the banking system.

PAYMENT SYSTEMS

Infrastructure:

Libya's payment system includes:

• Real-time gross settlement (RTGS) for interbank transfers
• Automated clearing houses (ACHs) for retail payments
• Check clearing and settlement
• Card-based payment processors
• Foreign currency settlement arrangements

Regulatory Oversight:

• Participant authorization and capital requirements
• Operational resilience standards
• Cybersecurity and fraud prevention
• Settlement finality and risk management
• Business continuity requirements

Challenges:

Infrastructure disruptions and security constraints have periodically affected payment system operations.

FOREIGN EXCHANGE MANAGEMENT

FX Controls Framework:

Libya maintains controlled foreign exchange arrangements to manage limited hard currency reserves:

Personal FX Allowances:

• Resident individuals permitted up to USD 4,000 or equivalent annually per person (age 18+)
• Additional allowances for business travel, medical treatment (with documentation)
• Non-residents subject to conversion and repatriation controls

Corporate & Business Transactions:

• Documentary credit (letter of credit) requirements with specified limits
• Import-linked foreign exchange allocations
• Export earnings repatriation requirements
• Capital equipment and project financing arrangements

Circular No. 02/2024 Reforms (2024):

Implemented stricter foreign exchange controls:

• Tightened documentary credit issuance restrictions
• Lowered individual foreign exchange purchase limits
• Temporary 27% tax on foreign exchange purchases (early 2024)
• Relaxation of certain previous restrictions (mid-2024)
• Enhanced due diligence for transactions

Currency Management:

• Central bank authority over official exchange rates
• Dinar stabilization interventions
• Foreign currency reserve management
• Controls on currency import/export
• Trading regulations through authorized dealers

AML/CFT REGULATION

Legal Framework:

• Law on Money Laundering and Terrorist Financing — Core AML/CFT legislation
• Circular No. 05/2018 — Due diligence and suspicious activity reporting requirements
• FATF Recommendations — Alignment target (ongoing compliance efforts)
• UN Security Council Resolutions — Sanctions screening obligations

Key Requirements:

• Customer due diligence (CDD) and beneficial ownership identification
• Know-your-customer (KYC) procedures
• Ongoing transaction monitoring
• Suspicious activity reporting to Financial Information Unit
• Record retention (minimum 5+ years)
• Compliance officer designation
• Staff training and internal controls

Enhanced Foreign Currency Controls:

Circular No. 02/2024 includes enhanced AML/CFT elements:

• Strict verification of shipping and customs documents for transactions exceeding USD 500,000
• Enhanced due diligence for higher-value transactions
• Real-time transaction monitoring
• Sanctions list screening requirements
• Beneficial ownership verification

Terrorist Financing Obligations:

• Screening against UN sanctions lists
• Reporting of terrorism-linked transactions
• Freezing obligations for designated persons/entities
• International cooperation with law enforcement

Foreign Currency Deposit Rules:

Announced regulations (2024) for foreign currency cash deposits require:

• Identification and verification of depositors
• Source of funds documentation
• Real-time reporting to CBL
• Improved financial transparency
• AML/CFT compliance verification

Financial Intelligence Unit:

The CBL coordinates with Libya's FIU on:

• Suspicious activity investigation and analysis
• Law enforcement notification
• International financial intelligence sharing
• Sanctions compliance monitoring

POLITICAL CONTEXT & GOVERNANCE CHALLENGES

[UNVERIFIED: Institutional Complexity]

Libya faces significant political division affecting central banking:

Governance Structure:

• Tripoli-based: Government of National Unity (GNU) with associated CBL authority
• Eastern Libya: Government of National Stability with rival central banking institutions
• Reunification Efforts: International and regional initiatives (as of 2024-2026) for governance consolidation

2024 Crisis & Resolution:

• August 2024: GNU-aligned militias attempted removal of Governor Sadiq al-Kabir from office
• Al-Kabir claimed forced exile from Libya
• Stated removal attempt was illegal
• Accused former governor of mishandling oil revenues
• Response by Eastern Authority: Closure of all oil fields, facilities, and export terminals in protest
• Demonstrated economic leverage and political fragmentation
• Highlighted risks to financial system stability
• September 2024 Agreement: Consensual resolution through House of Representatives and High State Council
• Appointment of Naji Issa as CBL Governor
• Compromise candidate acceptable to competing authorities
• Aim to establish unified central banking supervision

Implications for Regulation:

• Dual regulatory structures create compliance complexity
• Unclear resolution authority in disputes
• Sanctions and capital controls enforcement variability
• AML/CFT implementation consistency challenges
• International regulatory cooperation complications

Reunification Efforts:

Multiple initiatives underway to restore unified governance:

• IMF technical assistance programs
• International diplomatic engagement
• Central banking consolidation discussions
• Payment system unification planning

ENFORCEMENT

Powers & Mechanisms:

• Administrative fines and penalties
• License suspension or revocation
• Corrective action orders
• Asset freezing and confiscation (AML/CFT)
• Criminal prosecution (shared with law enforcement)
• International cooperation and extradition

Violation Categories:

• Banking law and prudential rule violations
• AML/CFT non-compliance
• Unauthorized financial activities
• Money laundering facilitation
• Sanctions evasion
• Fraudulent operations

Coordination:

• Law enforcement cooperation (complicated by political division)
• International financial crime investigation participation
• FATF coordination
• INTERPOL and other international law enforcement networks

INTERNATIONAL ENGAGEMENT

International Cooperation:

• IMF Article IV consultations
• World Bank technical assistance
• FATF mutual evaluation and compliance monitoring
• MENAFATF (Middle East & North Africa Financial Action Task Force) participation
• International monetary system participation
• Regional economic cooperation forums

FATF Status & Concerns:

Libya has been subject to FATF monitoring and mutual evaluations regarding AML/CFT compliance, with identified deficiencies in:

• Terrorist financing supervision
• Sanctions implementation
• Financial intelligence coordination
• International cooperation mechanisms

Standards & Harmonization:

• Basel III banking standards adoption (aspiration; implementation challenges)
• IFRS financial reporting standards alignment
• FATF AML/CFT recommendations adoption
• Payment system international standards (CPSS principles)

CONTACTS & INFORMATION

Main Office:

Central Bank of Libya

Tripoli

Libya

Website: https://cbl.gov.ly/en/

Key Departments:

• Monetary Policy & Economic Research
• Banking Supervision & Prudential Regulation
• Foreign Exchange Administration
• Payment Systems Management
• AML/CFT Compliance & Financial Intelligence
• Legal & Regulatory Affairs

Board of Directors:

(See official CBL website for current composition; subject to political changes)

Contact Methods:

• Official website banking application submissions
• Regulatory reporting portals
• Email and telephone contact for licensed institutions

SOURCES & REFERENCES

1. The Central Bank of Libya - Official Website
2. Agreement Reached on Appointment of CBL Governor, Deputy and Board | Libya Herald
3. Libya: Staff Concluding Statement of the 2024 Article IV Mission | International Monetary Fund
4. Brokering a Solution to the Libyan Central Bank Crisis | Middle East Institute
5. Foreign Exchange in Libya: Circular No. 02/2024 Explained | Qabas Consulting & Training
6. CBL Introduces New Rules for Foreign Currency Deposits | Radarr Africa

Document Classification: Public Regulatory Reference (with political uncertainty caveats)

Region: North Africa / MENA

Last Verified: April 2026

Confidence Level: 90% (reduced due to political governance complexity and dual institutional structures)

Caveat: Regulatory environment subject to political developments affecting central bank authority and unified governance status.

Regulatory Powers

This entity exercises the following regulatory powers as the central monetary authority:

Regulatory Role and Function

Legal Foundation

Established by primary legislation (Central Bank Act or equivalent enabling statute) enacted by the national legislature. Operates under a statutory mandate that defines its objectives, powers, governance structure, and relationship with government. The legal framework typically provides for operational independence in monetary policy while maintaining accountability to the legislature.

Licensing and Authorization Relevance

The Central Bank of Libya (CBL) is a key licensing authority in Libya's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

The Central Bank of Libya (CBL) plays a central role in Libya's payment ecosystem:

Payment Systems Governed or Overseen

The CBL operates and/or oversees the national payment and settlement infrastructure of Libya. Specific systems include:

[Further detail on specific system names requires verification from official sources]

Relationship to Other Regulators

The Central Bank of Libya (CBL) operates within Libya's broader financial regulatory architecture and maintains relationships with:

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Notes on Naming and Language