_________________________________________________________
US State Dept Narcotics Report 2011:
Libya is a destination and transit point for smuggled goods, particularly
black market/counterfeit goods from sub-Saharan Africa, Egypt and
China. Contraband smuggling includes narcotics, particularly
hashish/cannabis and heroin. Additional supply of licit, but diverted
pharmaceuticals enters the market through diversion from hospitals and
pharmacies. Libya is not a production location for illegal drugs, although
its geographic position, porous borders and limited law enforcement
capacity make it an attractive transit point for illegal drugs. Recognizing
the problem of smuggling, Libyan authorities have publicly asserted they
have undertaken a campaign against smuggled goods, pointing to law
enforcement activities that have resulted in large seizures of heroin,
hashish, cocaine and psychotropic drugs.
Both drug trafficking and drug use are criminalized under Libyan law.
During the summer of 2010, Libyan public security officials representing
the Agency for Fighting Drugs and Psychotropic Substances told
reporters that over the last ten years, Libyan authorities have seized
approximately 100,000 tons of hashish, 360 kg of heroin and cocaine,
and 5 million drug tablets and psychotropic drugs. There is no way to
confirm the accuracy of these claims which seem exaggerated to some
well-informed observers of trafficking in Libya. The Agency also reported
that in 2009, approximately 3100 drug-related prosecutions had been
referred to Libyan courts. The 3100 cases involved about 4400
individuals, and of those approximately 3700 were Libyan nationals.
Accurate statistics on the scope of domestic drug use are difficult to
come by, as Libya lacks adequate survey capacity and possesses
strong social and religious taboos against reporting drug use. Between
June 26-28, Libya joined the international community to commemorate
the International Day Against Drug Abuse and Illicit Trafficking, through
an information and awareness campaign led by the Agency for Fighting
Drugs and Psychotropic Substances and the National Society for Anti-
Drugs and Mental Stimulants (a branch of the Qadhafi International
Charity and Development Foundation). The latter organization has
adopted a number of innovations in its campaign against drug use,
including organizing a two-hour debate on drugs on Shababia Radio, a
channel popular with young Libyan males, development of a popular
“Facebook” site, and a hotline available to addicts having a crisis or
seeking treatment. It cooperates with a number of international NGOs to
develop its anti-drug campaigns.
Libya is a party to the 1988 UN Drug Convention, the UN Convention
against Transnational Organized Crime and the UN Convention against
Corruption. In November 2009 Libya signed an agreement with the
United Nations Office on Drugs and Crime (UNODC) to open a regional
office in Tripoli, to help develop Libyan capacity to fight corruption,
reduce drug trafficking, and combat the spread of drug addiction and
HIV. The Libyan Government does not as a matter of policy encourage
drug trafficking nor does it encourage or facilitate the laundering of
proceeds from illegal drug transactions. No senior government officials
engage in such activity.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 3)
Libya is a destination and transit country for men and women from sub-
Saharan Africa and Asia subjected to forced labor and forced
prostitution. Migrants typically seek employment in Libya as laborers and
domestic workers or transit Libya en route to Europe. Although precise
figures are unavailable, there were an estimated 1.5 to 2 million
foreigners in Libya at the end of 2010. Increasingly, an unknown number
of migrant workers in the construction sector – particularly Filipinos,
Nepalis, Indians, Bangladeshis, and sub-Saharan Africans – faced
fraudulent recruitment practices, confiscation of identity and travel
documents, withholding or nonpayment of wages, or debt bondage.
Since February 2011, Libya has experienced internal unrest, stranding
many foreign workers in the country under harsh and unsafe conditions
which, in some cases, resulted in death. Some of those workers may be
trafficking victims. Trafficking victims are likely to be particularly
vulnerable to being trapped in Libya as a result of the confiscation of
their travel and identification documents. As of March 2011, international
relief organizations were unable to operate in some parts of Libya,
exacerbating relief efforts. Some migrant workers were robbed by pro-
regime Libyan soldiers, and a Red Crescent official said that soldiers
have blocked about 30,000 migrant workers from fleeing into Tunisia
and forced many to return to work in Tripoli. A media report asserted
that some sub-Saharan African migrants were forced to fight with pro-
government groups.
The number of migrants, including trafficking victims, who were smuggled
to or through Malta and Italy were considerably smaller than in previous
years due to Libyan and Italian joint naval patrols; however, migrants
complained of very poor treatment and no efforts to identify trafficking
victims among them. Migration to Europe has increased considerably
since the onset of the civil disturbance. In many cases, smuggling debts
and illegal status leave migrants vulnerable to coercion, resulting in
cases of forced prostitution and forced labor. As in previous years, there
were isolated reports that women from sub-Saharan Africa were forced
into prostitution in Libya.
The Government of Libya does not fully comply with the minimum
standards for the elimination of trafficking and Libya is placed on Tier 2
Watch List for a sixth consecutive year. Therefore, pursuant to Section
107 of the 2008 Trafficking Victims Protection Reauthorization Act, Libya
is deemed not to be making significant efforts to comply with the
minimum standards and is placed on Tier 3. In the first 11 months of the
reporting period, the Libyan government failed to demonstrate significant
efforts to investigate and prosecute trafficking offenses or to protect
trafficking victims. Moreover, the government’s policies and practices
with respect to undocumented migrant workers resulted in Libyan
authorities also punishing trafficking victims for unlawful acts that were
committed as a result of their being trafficked. Following the outbreak of
civil unrest in February 2011, accurate information regarding the
situation in Libya has become very limited.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2010
Overview: The Libyan government continued to demonstrate a strong
and active commitment to combating terrorist organizations and violent
extremism through bilateral and regional counterterrorism and security
cooperation, particularly on the issue of foreign fighter flow to Iraq.
Domestically, the Government of Libya has continued implementation of
a counter-radicalization program focused on rehabilitating former Libyan
Islamic Fighting Group (LIFG) leaders and members, as well as other
Libyans formerly involved with extremist organizations. Regionally, Libya
remained a counterterrorism ally and worked with neighboring countries
to counter and respond to terrorist threats stemming from al-Qa’ida in
the Islamic Maghreb (AQIM) and other extremist groups.
Legislation and Law Enforcement: Libya maintained long-standing
legislation that was used to counter terrorism and terrorist financing.
During recent prisoner releases, Saif al-Islam al-Qadhafi, the son of
Libyan leader Muammar al-Qadhafi, indicated that some individuals
involved in domestic political opposition movements had been wrongly
imprisoned on charges of terrorism. New legislation on immigration,
ratified during the first half of 2010, contained articles designed to
counter the spread of terrorism into Libya.
In 2010, Libya took steps to improve its capacity to monitor its borders
and coastlines in an effort to strengthen domestic counterterrorism and
security capabilities. The Government of Libya has requested additional
support for training of and technical assistance to border guards and
security personnel. The government’s security ministries and agencies
also cooperated with European partners to better train and equip
domestic security forces. The government maintained strict port security
measures and requested assistance from European nations to expand
technical capacity to monitor its 2,000 km desert border.
The Libyan government enforced strict security measures and controls
over tourist activity within the country, due to concerns that foreign
tourists represented attractive targets for terrorists.
Countering Terrorist Finance: Libya maintained legislation to counter
terrorist financing and money laundering. The Libyan Central Bank’s
Financial Crimes Unit led Libya’s efforts to fight terrorist finance and
money laundering but lacked the capacity to operate effectively. Libya’s
largely cash-based economy further complicated regulation and
monitoring of domestic financial activity.
Regional and International Cooperation: In September, the heads of
state from Libya, Algeria, Mauritania, and Mali met in the coastal city of
Sirte to discuss coordination efforts to identify and combat security
threats linked to AQIM in the Sahel-Sahara region. Regional
governments have publicly confirmed coordination between Libya,
Algeria, and Mali on military and intelligence efforts to fight threats from
AQIM.
Countering Radicalization and Violent Extremism: In coordination with the
Qadhafi International Charity and Development Foundation (QDF), the
Libyan government worked to combat domestic terrorist threats through
a counter-radicalization program among former members of the LIFG
and other terrorist organizations. The goal of the rehabilitation efforts
was through dialogue on and exposure to moderate interpretations of
Islam, to encourage Libyans formerly involved in terrorist activity to
renounce violence and reintegrate into Libyan society.
At a March 24 press conference, QDF chairman and son of Libyan
leader Muammar al-Qadhafi, Saif al-Islam, announced the release of 214
prisoners as part of the counter-radicalization program. The released
prisoners included the three top LIFG figures, 31 other LIFG members,
100 former members of "radical groups involved in Iraq," as well as 80
individuals charged as associates of “jihadist cells" but whom the Libyan
courts had determined were actually prisoners of conscience. Another
37 former LIFG members were released in September as part of the
same program. During the press conference, Saif al-Islam claimed that
the individuals no longer constituted a threat to Libyan society and would
be reintegrated into their communities. The Libyan government and QDF
oversee the reintegration process, which includes job training and
counseling.
The Libyan government, working with the government-sponsored World
Islamic Call Society, QDF, and the government-affiliated Waatesimu
Charity Organization, sponsored visits to Libya throughout the last year
by a number of moderate Egyptian and Saudi Islamic scholars. The visits
were designed to reach out primarily to populations of the country that
have historically been politically disenfranchised, as well as to those in
detention on terrorism-related charges. The World Islamic Call Society
issued guidance to imams throughout Libya that included direction to
avoid extremism in sermons.
_________________________________________________________
AML News / updates
December 20, 2011 - EU implemented Council Regulation (EU) No
1360/2011 of 20 December 2011 amending Regulation (EU) No
204/2011 concerning restrictive measures in view of the situation in Libya
Read Regulation
With effect from 16 December, 2011, the UN Security Council has lifted
sanctions on Libya's central bank and its foreign investment bank, to
help the country deal with a cash crisis.
The move clears the way for the new government to unlock billions of
dollars of assets held abroad.
The US and the UK followed suit shortly afterwards.
November 10, 2011 - EU COUNCIL DECISION 2011/729/CFSP of 10
November 2011 amending Decision 2011/137/CFSP concerning
restrictive measures in view of the situation in Libya
View Regulation
September 29, 2011 - UN (19 Sept 2011), EU (22 September, 2011)
and USA (OFAC) (16 Sept 2011) ease sanctions - to read more, see
under Sanctions at top of page
February 28, 2011 - EU imposes sanctions on Libya
Read More....
February 27, 2011 - UN imposes military and financial sanctions
against Libyan leader Moammar Gaddafi and his inner circle
Read more....
February 25, 2011 - US imposes sanctions against Libyan leader
Moammar Gaddafi, family members and others
Read More....
FinCEN has issued Guidance to Financial Institutions on Recent Events
in Libya
Read Guidance....
EU prepares to impose restrictions
Read More.....
Links:
Worldwide AML Legislation (International Bar Association)
US State Dept Narcotics Report 2011:
Libya is a destination and transit point for smuggled goods, particularly
black market/counterfeit goods from sub-Saharan Africa, Egypt and
China. Contraband smuggling includes narcotics, particularly
hashish/cannabis and heroin. Additional supply of licit, but diverted
pharmaceuticals enters the market through diversion from hospitals and
pharmacies. Libya is not a production location for illegal drugs, although
its geographic position, porous borders and limited law enforcement
capacity make it an attractive transit point for illegal drugs. Recognizing
the problem of smuggling, Libyan authorities have publicly asserted they
have undertaken a campaign against smuggled goods, pointing to law
enforcement activities that have resulted in large seizures of heroin,
hashish, cocaine and psychotropic drugs.
Both drug trafficking and drug use are criminalized under Libyan law.
During the summer of 2010, Libyan public security officials representing
the Agency for Fighting Drugs and Psychotropic Substances told
reporters that over the last ten years, Libyan authorities have seized
approximately 100,000 tons of hashish, 360 kg of heroin and cocaine,
and 5 million drug tablets and psychotropic drugs. There is no way to
confirm the accuracy of these claims which seem exaggerated to some
well-informed observers of trafficking in Libya. The Agency also reported
that in 2009, approximately 3100 drug-related prosecutions had been
referred to Libyan courts. The 3100 cases involved about 4400
individuals, and of those approximately 3700 were Libyan nationals.
Accurate statistics on the scope of domestic drug use are difficult to
come by, as Libya lacks adequate survey capacity and possesses
strong social and religious taboos against reporting drug use. Between
June 26-28, Libya joined the international community to commemorate
the International Day Against Drug Abuse and Illicit Trafficking, through
an information and awareness campaign led by the Agency for Fighting
Drugs and Psychotropic Substances and the National Society for Anti-
Drugs and Mental Stimulants (a branch of the Qadhafi International
Charity and Development Foundation). The latter organization has
adopted a number of innovations in its campaign against drug use,
including organizing a two-hour debate on drugs on Shababia Radio, a
channel popular with young Libyan males, development of a popular
“Facebook” site, and a hotline available to addicts having a crisis or
seeking treatment. It cooperates with a number of international NGOs to
develop its anti-drug campaigns.
Libya is a party to the 1988 UN Drug Convention, the UN Convention
against Transnational Organized Crime and the UN Convention against
Corruption. In November 2009 Libya signed an agreement with the
United Nations Office on Drugs and Crime (UNODC) to open a regional
office in Tripoli, to help develop Libyan capacity to fight corruption,
reduce drug trafficking, and combat the spread of drug addiction and
HIV. The Libyan Government does not as a matter of policy encourage
drug trafficking nor does it encourage or facilitate the laundering of
proceeds from illegal drug transactions. No senior government officials
engage in such activity.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 3)
Libya is a destination and transit country for men and women from sub-
Saharan Africa and Asia subjected to forced labor and forced
prostitution. Migrants typically seek employment in Libya as laborers and
domestic workers or transit Libya en route to Europe. Although precise
figures are unavailable, there were an estimated 1.5 to 2 million
foreigners in Libya at the end of 2010. Increasingly, an unknown number
of migrant workers in the construction sector – particularly Filipinos,
Nepalis, Indians, Bangladeshis, and sub-Saharan Africans – faced
fraudulent recruitment practices, confiscation of identity and travel
documents, withholding or nonpayment of wages, or debt bondage.
Since February 2011, Libya has experienced internal unrest, stranding
many foreign workers in the country under harsh and unsafe conditions
which, in some cases, resulted in death. Some of those workers may be
trafficking victims. Trafficking victims are likely to be particularly
vulnerable to being trapped in Libya as a result of the confiscation of
their travel and identification documents. As of March 2011, international
relief organizations were unable to operate in some parts of Libya,
exacerbating relief efforts. Some migrant workers were robbed by pro-
regime Libyan soldiers, and a Red Crescent official said that soldiers
have blocked about 30,000 migrant workers from fleeing into Tunisia
and forced many to return to work in Tripoli. A media report asserted
that some sub-Saharan African migrants were forced to fight with pro-
government groups.
The number of migrants, including trafficking victims, who were smuggled
to or through Malta and Italy were considerably smaller than in previous
years due to Libyan and Italian joint naval patrols; however, migrants
complained of very poor treatment and no efforts to identify trafficking
victims among them. Migration to Europe has increased considerably
since the onset of the civil disturbance. In many cases, smuggling debts
and illegal status leave migrants vulnerable to coercion, resulting in
cases of forced prostitution and forced labor. As in previous years, there
were isolated reports that women from sub-Saharan Africa were forced
into prostitution in Libya.
The Government of Libya does not fully comply with the minimum
standards for the elimination of trafficking and Libya is placed on Tier 2
Watch List for a sixth consecutive year. Therefore, pursuant to Section
107 of the 2008 Trafficking Victims Protection Reauthorization Act, Libya
is deemed not to be making significant efforts to comply with the
minimum standards and is placed on Tier 3. In the first 11 months of the
reporting period, the Libyan government failed to demonstrate significant
efforts to investigate and prosecute trafficking offenses or to protect
trafficking victims. Moreover, the government’s policies and practices
with respect to undocumented migrant workers resulted in Libyan
authorities also punishing trafficking victims for unlawful acts that were
committed as a result of their being trafficked. Following the outbreak of
civil unrest in February 2011, accurate information regarding the
situation in Libya has become very limited.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2010
Overview: The Libyan government continued to demonstrate a strong
and active commitment to combating terrorist organizations and violent
extremism through bilateral and regional counterterrorism and security
cooperation, particularly on the issue of foreign fighter flow to Iraq.
Domestically, the Government of Libya has continued implementation of
a counter-radicalization program focused on rehabilitating former Libyan
Islamic Fighting Group (LIFG) leaders and members, as well as other
Libyans formerly involved with extremist organizations. Regionally, Libya
remained a counterterrorism ally and worked with neighboring countries
to counter and respond to terrorist threats stemming from al-Qa’ida in
the Islamic Maghreb (AQIM) and other extremist groups.
Legislation and Law Enforcement: Libya maintained long-standing
legislation that was used to counter terrorism and terrorist financing.
During recent prisoner releases, Saif al-Islam al-Qadhafi, the son of
Libyan leader Muammar al-Qadhafi, indicated that some individuals
involved in domestic political opposition movements had been wrongly
imprisoned on charges of terrorism. New legislation on immigration,
ratified during the first half of 2010, contained articles designed to
counter the spread of terrorism into Libya.
In 2010, Libya took steps to improve its capacity to monitor its borders
and coastlines in an effort to strengthen domestic counterterrorism and
security capabilities. The Government of Libya has requested additional
support for training of and technical assistance to border guards and
security personnel. The government’s security ministries and agencies
also cooperated with European partners to better train and equip
domestic security forces. The government maintained strict port security
measures and requested assistance from European nations to expand
technical capacity to monitor its 2,000 km desert border.
The Libyan government enforced strict security measures and controls
over tourist activity within the country, due to concerns that foreign
tourists represented attractive targets for terrorists.
Countering Terrorist Finance: Libya maintained legislation to counter
terrorist financing and money laundering. The Libyan Central Bank’s
Financial Crimes Unit led Libya’s efforts to fight terrorist finance and
money laundering but lacked the capacity to operate effectively. Libya’s
largely cash-based economy further complicated regulation and
monitoring of domestic financial activity.
Regional and International Cooperation: In September, the heads of
state from Libya, Algeria, Mauritania, and Mali met in the coastal city of
Sirte to discuss coordination efforts to identify and combat security
threats linked to AQIM in the Sahel-Sahara region. Regional
governments have publicly confirmed coordination between Libya,
Algeria, and Mali on military and intelligence efforts to fight threats from
AQIM.
Countering Radicalization and Violent Extremism: In coordination with the
Qadhafi International Charity and Development Foundation (QDF), the
Libyan government worked to combat domestic terrorist threats through
a counter-radicalization program among former members of the LIFG
and other terrorist organizations. The goal of the rehabilitation efforts
was through dialogue on and exposure to moderate interpretations of
Islam, to encourage Libyans formerly involved in terrorist activity to
renounce violence and reintegrate into Libyan society.
At a March 24 press conference, QDF chairman and son of Libyan
leader Muammar al-Qadhafi, Saif al-Islam, announced the release of 214
prisoners as part of the counter-radicalization program. The released
prisoners included the three top LIFG figures, 31 other LIFG members,
100 former members of "radical groups involved in Iraq," as well as 80
individuals charged as associates of “jihadist cells" but whom the Libyan
courts had determined were actually prisoners of conscience. Another
37 former LIFG members were released in September as part of the
same program. During the press conference, Saif al-Islam claimed that
the individuals no longer constituted a threat to Libyan society and would
be reintegrated into their communities. The Libyan government and QDF
oversee the reintegration process, which includes job training and
counseling.
The Libyan government, working with the government-sponsored World
Islamic Call Society, QDF, and the government-affiliated Waatesimu
Charity Organization, sponsored visits to Libya throughout the last year
by a number of moderate Egyptian and Saudi Islamic scholars. The visits
were designed to reach out primarily to populations of the country that
have historically been politically disenfranchised, as well as to those in
detention on terrorism-related charges. The World Islamic Call Society
issued guidance to imams throughout Libya that included direction to
avoid extremism in sermons.
_________________________________________________________
AML News / updates
December 20, 2011 - EU implemented Council Regulation (EU) No
1360/2011 of 20 December 2011 amending Regulation (EU) No
204/2011 concerning restrictive measures in view of the situation in Libya
Read Regulation
With effect from 16 December, 2011, the UN Security Council has lifted
sanctions on Libya's central bank and its foreign investment bank, to
help the country deal with a cash crisis.
The move clears the way for the new government to unlock billions of
dollars of assets held abroad.
The US and the UK followed suit shortly afterwards.
November 10, 2011 - EU COUNCIL DECISION 2011/729/CFSP of 10
November 2011 amending Decision 2011/137/CFSP concerning
restrictive measures in view of the situation in Libya
View Regulation
September 29, 2011 - UN (19 Sept 2011), EU (22 September, 2011)
and USA (OFAC) (16 Sept 2011) ease sanctions - to read more, see
under Sanctions at top of page
February 28, 2011 - EU imposes sanctions on Libya
Read More....
February 27, 2011 - UN imposes military and financial sanctions
against Libyan leader Moammar Gaddafi and his inner circle
Read more....
February 25, 2011 - US imposes sanctions against Libyan leader
Moammar Gaddafi, family members and others
Read More....
FinCEN has issued Guidance to Financial Institutions on Recent Events
in Libya
Read Guidance....
EU prepares to impose restrictions
Read More.....
Links:
Worldwide AML Legislation (International Bar Association)
|
|
Sanctions:
The EU implemented Council Regulation (EU) No 1360/2011
of 20 December 2011 amending Regulation (EU) No 204/2011
concerning restrictive measures in view of the situation in Libya
Read Regulation
With effect from 16 December, 2011, the UN Security Council has
lifted sanctions on Libya's central bank and its foreign investment
bank, to help the country deal with a cash crisis.
The move clears the way for the new government to unlock
billions of dollars of assets held abroad.
The US and the UK followed suit shortly afterwards.
Read Regulation
Read OFAC Summary
Certain UN, EU and USA (OFAC) sanctions have been eased.
These are as follows: -
EU COUNCIL DECISION 2011/729/CFSP
of 10 November 2011 amending Decision 2011/137/CFSP
concerning restrictive measures in view of the situation in
Libya
View Regulation
United Nations Security Council Resolution 2009 (Sept 2011)
[1] UNSCR 2009 maintains the asset freeze imposed against
Qadhafi and his family by UN Security Council Resolution 1970
(2011). [2] However, UNSCR 2009 unblocks assets of the Libyan
National Oil Corporation and Zueitina Oil Company. Additionally,
UNSCR 2009 modifies asset freezes currently in place against the
Central Bank of Libya, Libyan Arab Foreign Bank, Libyan
Investment Authority and Libyan Africa Investment Portfolio.
Pursuant to the changes, although the financial assets of these
entities remains frozen, individuals may now engage in new
transactions with these entities, and any “new” funds generated
after September 16, 2011 are not subject to an asset freeze.
Additionally, UNSCR 2009 permits states to unblock the assets
that remain frozen for the following purposes:
Humanitarian needs;
Fuel, electricity and water for strictly civilian uses;
Resuming Libyan production and sale of hydrocarbons;
Establishing, operating or strengthening institutions of civilian
government and civilian public infrastructure; or
Facilitating the resumption of banking sector operations, including
to support or facilitate international trade with Libya.
Finally, UNSCR 2009 modifies the arms embargo imposed
pursuant to UNSCR 1970 to allow the Transitional National
Council 'TNC' to buy arms “intended solely for security or
disarmament assistance.” The TNC, however, must notify and
seek approval from the Sanctions Committee five days in advance
of any such transfers or purchases.
Click here to view full resolution
United States (OFAC)
General Licence 7/7a (Sept 2011):
With Respect to the Libyan National Oil Corporation and Its
Subsidiaries authorising U.S. persons to engage in all
transactions involving the Libyan National Oil Corporation (NOC)
or entities owned or controlled by NOC, provided that such
transactions do not involve persons whose property and interests
in property are blocked. [3] This general license covers all NOC
subsidiaries.
In addition to authorizing all prospective transactions with NOC
and entities owned or controlled by NOC, General License 7A
unblocks all property and interests in property of these entities.
Within 10 business days of the release of blocked funds, including
cash and securities, however, the releasing party must file a
report with the Sanctions Compliance and Evaluation Division of
OFAC. Such a report must indicate the date of release of the
funds as well as the amount released, and must include a copy of
the relevant initial blocking report.
Click here to view General Licence 7a
General License 8/8a (Sept 2011):
General License with Respect to the Government of Libya, Its
Agencies, Instrumentalities and Controlled Entities and the Central
Bank of Libya authorising all prospective transactions involving
the Government of Libya, its agencies, instrumentalities and
controlled entities and the Central Bank of Libya, subject to two
limitations. [4] First, all property and interests in property blocked
pursuant to Executive Order 13566 [5] or the Libyan Sanctions
Regulations [6] remain blocked, except as authorized under
General License 7A. Second, transactions must not involve
specific persons listed in the annex to the license, which primarily
focuses on members of the Qadhafi family, as well as certain
senior members of the former Libyan regime, such as Ali Al-
Mahmoudi Al Baghdadi, former Prime Minister of Libya, Abu Zaid
Dorda, former Director of the External Security Organization,
Abdullah Al-Senussi, former Director of Military Intelligence,
among others.
Click here to view General Licence 8a
EU ( Regulation (EU) No 941/2011)
On 22 September, 2011 the EU lifted sanctions on Libya in line
with the UN Security resolution partially removing an arms
embargo, unlocking frozen central bank and oil funds and letting
Libyan aircraft use European runways.
Click here to view Regulation
Click here to view Notice
Previous Sanctions
On February 27, 2011, the UN imposed military and financial
sanctions against Libyan leader Moammar Gaddafi and his inner
circle
http://www.un.org/apps/news/story.asp?
NewsID=37633&Cr=libya&Cr1=
On February 25, the US imposed sanctions on Libya. For further
information, please visit the following link: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/libya.aspx
On February 28, 2011 EU restrictive measures were put in place
against Libyan leader Moammar Gaddafi and other persons
responsible for the violent crackdown on the civilian population
since 15 February
http://www.consilium.europa.
eu/uedocs/cms_data/docs/pressdata/EN/foraff/119524.pdf
EU restrictive measures are also currently in force. For further
information, please visit the following link: -
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
these measures were extended on 24 March, 2011: -
http://www.consilium.europa.
eu/uedocs/cms_data/docs/pressdata/EN/foraff/120220.pdf
November 28, 2011 - The Arab League (comprising 22 Arab
member states), of which this country is a member, has approved
imposing sanctions on Syria. These include: -
* Cutting off transactions with the Syrian central bank
* Halting funding by Arab governments for projects in Syria
* A ban on senior Syrian officials travelling to other Arab countries
* A freeze on assets related to President Bashar al-Assad's
government
The declaration also calls on Arab central banks to monitor
transfers to Syria, with the exception of remittances from Syrians
abroad.
For further information, click here
The Arab League (comprising 22 Arab member states), of which
this country is a member, has boycotted Israel in a systematic
effort to isolate Israel economically in support of the Palestinians,
however, the implementation of the boycott has varied over time
among member states..
There are three tiers to the boycott. The primary boycott prohibits
the importation of Israeli-origin goods and services into boycotting
countries. The secondary boycott prohibits individuals, as well as
private and public sector firms and organizations, in member
countries from engaging in business with any entity that does
business in Israel. The Arab League maintains a blacklist of such
firms. The tertiary boycott prohibits any
entity in a member country from doing business with a company or
individual that has business dealings with U.S. or other firms on
the Arab League blacklist.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Libyan oil and gas sectors constitute over 70 percent of
GDP. Libya’s economy remains primarily cash-based, and hawala
and informal value transfer networks are present. Libya is a
destination and transit point for smuggled goods, particularly
black market and counterfeit goods from sub-Saharan Africa,
Egypt and China. Contraband smuggling reportedly includes
narcotics, particularly hashish/cannabis and heroin. Libya is not
considered to be a production location for illegal drugs, although
its geographic position, porous borders and limited law
enforcement capacity make it an attractive transit point for illegal
drugs. Libya is also a transit and destination country for large
numbers of migrants from sub-Saharan Africa, whose movement
across borders is primarily facilitated by smugglers. In general,
training and resources are lacking to conduct anti-money
laundering awareness and for countermeasure implementation.
Libya has been going through a slow opening of its financial
sector and modernization of its banking system.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: Not available civilly: Not
available
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and financial institutions authorized by
the Libyan Central Bank
Enhanced due diligence procedures for PEPs: Foreign: Unknown
Domestic: Unknown
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Financial institutions authorized by the Libyan
Central Bank
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Libya is a member of the Middle East and North Africa Financial
Action Task Force (MENAFATF), a Financial Action Task Force-
style regional body. It has not yet had a mutual evaluation.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
There is little information or reliable data on the scope of Libya’s
anti-money laundering/counter-terrorist financing
countermeasures including investigations, asset forfeiture,
prosecutions, and convictions. Libya has not criminalized terrorist
financing.
It is illegal to transfer funds outside of Libya without the approval
of the Libyan Central Bank. Cash courier operations are in
violation of Libyan law. It is estimated that up to ten percent of
foreign transfers are made through illegal means (i.e., not through
the Central Bank). Between 1.5 and 2 million foreigners are
thought to live and work in Libya. Funds transfers by migrant
workers (mainly from sub-Saharan Africa and Asia) are difficult for
the Libyan government to monitor, particularly transfers by
criminal organizations.
Informal hawala money dealers (muhawaleen) exist in Libya, and
are often used to facilitate trade and small project finance. Trade
is often used to provide counter-valuation or a means of
balancing the books between hawaladars. Given the poor quality
and limited reach of Libya’s banking system, Libya’s socialist
practices, and commercial rivalries among regime insiders that
discourage disclosure of income and business transactions, many
Libyans and foreigners rely on informal mechanisms for cash
payments and transactions. Until the recent revision of the tax
code, tax rates of up to 80-90 percent also encouraged off-the-
book transactions.
The EU implemented Council Regulation (EU) No 1360/2011
of 20 December 2011 amending Regulation (EU) No 204/2011
concerning restrictive measures in view of the situation in Libya
Read Regulation
With effect from 16 December, 2011, the UN Security Council has
lifted sanctions on Libya's central bank and its foreign investment
bank, to help the country deal with a cash crisis.
The move clears the way for the new government to unlock
billions of dollars of assets held abroad.
The US and the UK followed suit shortly afterwards.
Read Regulation
Read OFAC Summary
Certain UN, EU and USA (OFAC) sanctions have been eased.
These are as follows: -
EU COUNCIL DECISION 2011/729/CFSP
of 10 November 2011 amending Decision 2011/137/CFSP
concerning restrictive measures in view of the situation in
Libya
View Regulation
United Nations Security Council Resolution 2009 (Sept 2011)
[1] UNSCR 2009 maintains the asset freeze imposed against
Qadhafi and his family by UN Security Council Resolution 1970
(2011). [2] However, UNSCR 2009 unblocks assets of the Libyan
National Oil Corporation and Zueitina Oil Company. Additionally,
UNSCR 2009 modifies asset freezes currently in place against the
Central Bank of Libya, Libyan Arab Foreign Bank, Libyan
Investment Authority and Libyan Africa Investment Portfolio.
Pursuant to the changes, although the financial assets of these
entities remains frozen, individuals may now engage in new
transactions with these entities, and any “new” funds generated
after September 16, 2011 are not subject to an asset freeze.
Additionally, UNSCR 2009 permits states to unblock the assets
that remain frozen for the following purposes:
Humanitarian needs;
Fuel, electricity and water for strictly civilian uses;
Resuming Libyan production and sale of hydrocarbons;
Establishing, operating or strengthening institutions of civilian
government and civilian public infrastructure; or
Facilitating the resumption of banking sector operations, including
to support or facilitate international trade with Libya.
Finally, UNSCR 2009 modifies the arms embargo imposed
pursuant to UNSCR 1970 to allow the Transitional National
Council 'TNC' to buy arms “intended solely for security or
disarmament assistance.” The TNC, however, must notify and
seek approval from the Sanctions Committee five days in advance
of any such transfers or purchases.
Click here to view full resolution
United States (OFAC)
General Licence 7/7a (Sept 2011):
With Respect to the Libyan National Oil Corporation and Its
Subsidiaries authorising U.S. persons to engage in all
transactions involving the Libyan National Oil Corporation (NOC)
or entities owned or controlled by NOC, provided that such
transactions do not involve persons whose property and interests
in property are blocked. [3] This general license covers all NOC
subsidiaries.
In addition to authorizing all prospective transactions with NOC
and entities owned or controlled by NOC, General License 7A
unblocks all property and interests in property of these entities.
Within 10 business days of the release of blocked funds, including
cash and securities, however, the releasing party must file a
report with the Sanctions Compliance and Evaluation Division of
OFAC. Such a report must indicate the date of release of the
funds as well as the amount released, and must include a copy of
the relevant initial blocking report.
Click here to view General Licence 7a
General License 8/8a (Sept 2011):
General License with Respect to the Government of Libya, Its
Agencies, Instrumentalities and Controlled Entities and the Central
Bank of Libya authorising all prospective transactions involving
the Government of Libya, its agencies, instrumentalities and
controlled entities and the Central Bank of Libya, subject to two
limitations. [4] First, all property and interests in property blocked
pursuant to Executive Order 13566 [5] or the Libyan Sanctions
Regulations [6] remain blocked, except as authorized under
General License 7A. Second, transactions must not involve
specific persons listed in the annex to the license, which primarily
focuses on members of the Qadhafi family, as well as certain
senior members of the former Libyan regime, such as Ali Al-
Mahmoudi Al Baghdadi, former Prime Minister of Libya, Abu Zaid
Dorda, former Director of the External Security Organization,
Abdullah Al-Senussi, former Director of Military Intelligence,
among others.
Click here to view General Licence 8a
EU ( Regulation (EU) No 941/2011)
On 22 September, 2011 the EU lifted sanctions on Libya in line
with the UN Security resolution partially removing an arms
embargo, unlocking frozen central bank and oil funds and letting
Libyan aircraft use European runways.
Click here to view Regulation
Click here to view Notice
Previous Sanctions
On February 27, 2011, the UN imposed military and financial
sanctions against Libyan leader Moammar Gaddafi and his inner
circle
http://www.un.org/apps/news/story.asp?
NewsID=37633&Cr=libya&Cr1=
On February 25, the US imposed sanctions on Libya. For further
information, please visit the following link: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/libya.aspx
On February 28, 2011 EU restrictive measures were put in place
against Libyan leader Moammar Gaddafi and other persons
responsible for the violent crackdown on the civilian population
since 15 February
http://www.consilium.europa.
eu/uedocs/cms_data/docs/pressdata/EN/foraff/119524.pdf
EU restrictive measures are also currently in force. For further
information, please visit the following link: -
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
these measures were extended on 24 March, 2011: -
http://www.consilium.europa.
eu/uedocs/cms_data/docs/pressdata/EN/foraff/120220.pdf
November 28, 2011 - The Arab League (comprising 22 Arab
member states), of which this country is a member, has approved
imposing sanctions on Syria. These include: -
* Cutting off transactions with the Syrian central bank
* Halting funding by Arab governments for projects in Syria
* A ban on senior Syrian officials travelling to other Arab countries
* A freeze on assets related to President Bashar al-Assad's
government
The declaration also calls on Arab central banks to monitor
transfers to Syria, with the exception of remittances from Syrians
abroad.
For further information, click here
The Arab League (comprising 22 Arab member states), of which
this country is a member, has boycotted Israel in a systematic
effort to isolate Israel economically in support of the Palestinians,
however, the implementation of the boycott has varied over time
among member states..
There are three tiers to the boycott. The primary boycott prohibits
the importation of Israeli-origin goods and services into boycotting
countries. The secondary boycott prohibits individuals, as well as
private and public sector firms and organizations, in member
countries from engaging in business with any entity that does
business in Israel. The Arab League maintains a blacklist of such
firms. The tertiary boycott prohibits any
entity in a member country from doing business with a company or
individual that has business dealings with U.S. or other firms on
the Arab League blacklist.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Libyan oil and gas sectors constitute over 70 percent of
GDP. Libya’s economy remains primarily cash-based, and hawala
and informal value transfer networks are present. Libya is a
destination and transit point for smuggled goods, particularly
black market and counterfeit goods from sub-Saharan Africa,
Egypt and China. Contraband smuggling reportedly includes
narcotics, particularly hashish/cannabis and heroin. Libya is not
considered to be a production location for illegal drugs, although
its geographic position, porous borders and limited law
enforcement capacity make it an attractive transit point for illegal
drugs. Libya is also a transit and destination country for large
numbers of migrants from sub-Saharan Africa, whose movement
across borders is primarily facilitated by smugglers. In general,
training and resources are lacking to conduct anti-money
laundering awareness and for countermeasure implementation.
Libya has been going through a slow opening of its financial
sector and modernization of its banking system.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: Not available civilly: Not
available
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and financial institutions authorized by
the Libyan Central Bank
Enhanced due diligence procedures for PEPs: Foreign: Unknown
Domestic: Unknown
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Financial institutions authorized by the Libyan
Central Bank
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Libya is a member of the Middle East and North Africa Financial
Action Task Force (MENAFATF), a Financial Action Task Force-
style regional body. It has not yet had a mutual evaluation.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
There is little information or reliable data on the scope of Libya’s
anti-money laundering/counter-terrorist financing
countermeasures including investigations, asset forfeiture,
prosecutions, and convictions. Libya has not criminalized terrorist
financing.
It is illegal to transfer funds outside of Libya without the approval
of the Libyan Central Bank. Cash courier operations are in
violation of Libyan law. It is estimated that up to ten percent of
foreign transfers are made through illegal means (i.e., not through
the Central Bank). Between 1.5 and 2 million foreigners are
thought to live and work in Libya. Funds transfers by migrant
workers (mainly from sub-Saharan Africa and Asia) are difficult for
the Libyan government to monitor, particularly transfers by
criminal organizations.
Informal hawala money dealers (muhawaleen) exist in Libya, and
are often used to facilitate trade and small project finance. Trade
is often used to provide counter-valuation or a means of
balancing the books between hawaladars. Given the poor quality
and limited reach of Libya’s banking system, Libya’s socialist
practices, and commercial rivalries among regime insiders that
discourage disclosure of income and business transactions, many
Libyans and foreigners rely on informal mechanisms for cash
payments and transactions. Until the recent revision of the tax
code, tax rates of up to 80-90 percent also encouraged off-the-
book transactions.
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| LIBYA |
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| Last Updated: 16 April 2012 |