Libya Country Summary
Higher Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Medium Concern
Terrorism
Medium Concern
Corruption
Higher Concern
US State ML Assessment
Lower Concern
Criminal Markets (GI Index)
Higher Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Libya is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
Libya has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards.
Sanctions
The international sanctions against Libya, primarily imposed by the United Nations, include an arms embargo, travel bans, and asset freezes targeting the family of Muammar Al-Qadhafi and certain government officials, established through Resolution 1970 in February 2011. Additionally, the United States and the European Union have implemented similar restrictive measures, mirroring the UN sanctions while also introducing their own specific provisions to address human rights abuses and threats to Libya's stability.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 13 |
| World Bank: Control of Corruption Percentile Rank | 4 |
Libya is grappling with pervasive corruption and a significant presence of organized crime, which severely hampers foreign investment and undermines public trust in institutions. The lack of effective governance, compounded by the influence of militias and inadequate law enforcement, has created an environment where criminal activities such as human trafficking, arms smuggling, and financial crimes flourish, while civil society remains weak and vulnerable to repression.
Economy
Libya presents a complex investment climate characterized by significant potential due to its vast natural resources and reconstruction needs, yet it remains hindered by bureaucratic inefficiencies, corruption, and security threats. The Government of National Unity (GNU), established in 2021, has expressed a desire to attract foreign investment, but the lack of transparency and the historical failure to honor contracts create a challenging environment for investors. Despite these obstacles, sectors such as oil and gas, electricity, and infrastructure have historically attracted the most significant investments, although the ongoing political instability and the influence of armed groups continue to pose risks to economic development.
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