Resolution No. 1013 of 2017 Concerning the Issuance of the Anti-Money Laundering and Terrorism Financing Law

Resolution No. 1013 of 2017 Concerning the Issuance of the Anti-Money Laundering and Terrorism

The Presidential Council of the Government of National Accord,

Part One | Definitions 

Article 1

Definitions For the purposes of applying this law, the terms and expressions used shall have the meanings set forth alongside each of them unless the context indicates otherwise:

Funds: Assets or properties of any kind, whether tangible or intangible, movable or immovable, and in whatever form they are acquired, including all rights related to them, and all documents or records proving ownership or a share thereof, including electronic or digital documents. This includes but is not limited to cash in local and foreign currencies, virtual and electronic currencies, bank account balances, commercial papers, bank credits, traveler’s checks, financial transfers, and securities such as stocks and bonds, letters of credit or guarantees, collection documents, and insurance policies.

Person: A natural or legal person or a legal arrangement.

Legal Arrangements: Refers to express trusts or other similar legal arrangements.

Trusts: A legal relationship established by a person known as the settlor, whereby they place assets under the disposal of another known as the trustee for the benefit of a beneficiary or for a specific purpose, and these assets are separate from the trustee’s own assets, with rights over them in the name of the trustee or their representative. The trustee has the authority and responsibility to manage, employ, and dispose of these assets according to the terms of the trust and the powers granted under the law.

Wire Transfer: Any transaction carried out by a financial institution electronically on behalf of an originator (natural or legal person) with the purpose of providing a financial amount to a beneficiary in another financial institution, including cases where the originator and beneficiary are the same person.

Money or Value Transfer Service: Refers to financial services that involve accepting cash, checks, or other monetary instruments or stored value and paying an equivalent amount in cash or another form to a beneficiary via communication, message, transfer, or clearing network. It can include transactions involving one or more intermediaries and a final payment to a third party. It may also include any new payment methods.

Correspondent Banking: The provision of banking services by one bank (the correspondent bank) to another bank (the respondent bank), including but not limited to cash management, international and domestic transfers of funds, check clearing, intermediary accounts, foreign exchange, and other similar relationships.

Competent Authority: All public authorities or entities with specific responsibilities for combating money laundering and/or terrorism financing, freezing and confiscating related funds, including:

The Financial Information Unit, law enforcement authorities, authorities responsible for investigating and/or prosecuting money laundering and related predicate crimes, and terrorism financing; customs authorities that receive reports on cross-border transport of currency and negotiable instruments; and supervisory or oversight authorities in the field of anti-money laundering and terrorism financing to ensure the compliance of financial institutions, businesses, and non-financial professions with anti-money laundering and terrorism financing requirements.

Supervisory Authority: Any entity responsible for monitoring and overseeing financial institutions, designated businesses, and non-financial professions, ensuring their compliance with the rules, regulations, and standards governing their activities, including those issued to combat money laundering and terrorism financing. This includes the unit concerning entities identified by the committee when no supervisory or oversight authority is available.

The Committee: The National Anti-Money Laundering and Terrorism Financing Committee as stipulated in this law.

The Unit: The Libyan Financial Information Unit as stipulated in this law.

The Authority: The authority for implementing United Nations Security Council resolutions as stipulated in Article 81 of this law.

Predicate Offense: Any act committed in Libya that constitutes a crime, or any act committed abroad that is criminalized in both the country where the crime was committed and in Libya.

Means: Any tool used or intended to be used, wholly or partially, in any manner, in committing a crime.

Proceeds of Crime: Any funds derived or obtained, directly or indirectly, from money laundering, terrorism financing, or predicate crimes, including funds converted or exchanged, wholly or partially, into other funds, as well as any profits or returns from these funds, or any value accrued or due from them.

Money Laundering: Any act described in Article 38 of this law.

Terrorist Act: Any act or attempt committed in Libya or elsewhere, including the following:

a. An act intended to cause the death or serious bodily injury to a civilian or any other person when such person is not taking an active part in hostilities in a situation of armed conflict, and the purpose of such an act is to intimidate the population or compel a government or an international organization to do or abstain from doing any act. b. If the act constitutes a crime under the definitions provided in the following international conventions or protocols:

• The 1970 Convention for the Suppression of Unlawful Seizure of Aircraft, ratified by Law No. 19 of 1979.
• The 1971 Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, ratified by Law No. 62 of 1979.
• The 1973 Convention on the Prevention and Punishment of Crimes Against Internationally Protected Persons, Including Diplomatic Agents, ratified by Law No. 11 of 2000.
• The 1979 International Convention Against the Taking of Hostages, ratified by Law No. 11 of 2000.
• The 1988 Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, ratified by Law No. 31 of 2001, supplementing the 1971 Convention for the Suppression of Unlawful Acts Against the Safety of Civil Aviation, ratified by Law No. 62 of 1979.
• The 1988 Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation, ratified by Law No. 31 of 2001.
• The 1988 Protocol for the Suppression of Unlawful Acts Against the Safety of Fixed Platforms Located on the Continental Shelf, ratified by Law No. 31 of 2001.
• The 1980 Convention on the Physical Protection of Nuclear Material, ratified by Law No. 11 of 2000.
• The 1997 International Convention for the Suppression of Terrorist Bombings, ratified by Law No. 11 of 2000.
• The 1999 International Convention for the Suppression of the Financing of Terrorism, ratified by Law No. 31 of 2001.
• Any other international or regional conventions or protocols related to terrorism or its financing ratified by Libya and published in the Official Gazette.

Terrorist: Any natural person, whether in Libya or abroad:

a. Who commits or attempts to commit a terrorist act directly or indirectly, intentionally, and by any means according to the provisions of this law. b. Who intentionally participates in a terrorist act. c. Who organizes or directs others to commit a terrorist act. d. Who intentionally contributes to the commission of a terrorist act by a person or group acting with a common purpose, either to further the terrorist act or with knowledge of the intention of the person or group to commit a terrorist act. e. Who is named in any decision issued under Article 81 of this law.

Terrorist Organization: Any group of natural persons, whether in Libya or abroad, that commits, plans to commit, or was formed to commit any of the acts mentioned in the previous definition or is designated as such under Article 81 of this law.

Terrorism Financing: Any act described in Article 39 of this law.

Freezing: The temporary prohibition imposed by a competent authority under Articles 55, 56, and 81 of this law on the movement, transfer, conversion, disposition, or use of funds, equipment, or other means, for the duration of the freeze. The freeze includes the proceeds and profits of these funds, equipment, and means.

Seizure: The temporary prohibition imposed by a competent authority on the movement, transfer, conversion, disposition, or use of funds, equipment, or other means, for the duration of the seizure. The seizure includes the proceeds and profits of these funds. Article 58 of this law governs the management of these funds.

Confiscation: The permanent deprivation of funds, based on a court judgment or a decision issued by a competent authority in accordance with the law, transferring the ownership of confiscated funds to the state.

Financial Institution: Any natural or legal person who engages in one or more of the following activities on behalf of clients:

• Accepting deposits and other repayable funds, including private banking services.
• Lending and all forms of credit.
• Financial leasing.
• Transferring money or value, excluding entities that provide only messaging services for transfers or other supporting systems for executing transfers.
• Issuing and managing payment instruments, such as credit and debit cards, traveler’s checks, financial transfers, and electronic money.
• Financial guarantees and commitments.
• Trading in financial market instruments such as checks, bonds, promissory notes, certificates of deposit, derivatives, foreign currency, and exchange instruments, as well as interest and price indexes, and transferable securities.
• Participating in securities issues and providing related financial services.
• Managing individual and collective investment portfolios.
• Safekeeping, investing, or managing cash or non-financial assets on behalf of clients.
• Covering or issuing Takaful insurance policies, as well as life insurance and other types of investment insurance, including the activities of insurance agents and brokers.
• Currency exchange.
• Any other activity added by decision of the committee.

Designated Non-Financial Businesses and Professions: The following persons:

• Real estate agents and brokers when engaging in the purchase or sale of real estate on behalf of clients.
• Dealers in precious metals or precious stones.
• Lawyers, notaries, notary publics, and accountants, whether practicing independently, in partnership, or employed by a firm, when preparing or executing transactions on behalf of clients related to the following activities: a. The purchase and sale of real estate. b. The management of funds, securities, or other assets. c. The management of bank accounts, savings accounts, or securities accounts. d. The organization of contributions for the creation, operation, or management of companies. e. The creation, operation, or management of legal persons or legal arrangements, or the purchase and sale of business entities.
• Corporate and trust service providers not covered by law elsewhere when preparing or executing transactions on behalf of clients related to the following activities: a. Acting as a formation agent of legal persons. b. Acting or arranging for another person to act as a director, secretary of a company, partner, or similar position in relation to other legal persons. c. Providing a registered office or business address, correspondence address, or administrative address for a company or any legal person or legal arrangement. d. Acting or arranging for another person to act as a trustee in a direct trust or a similar position in another legal arrangement. e. Acting or arranging for another person to act as a nominee shareholder for another person.
• Any other person added by decision of the committee.

Bearer Negotiable Instruments: Cash-like instruments in the form of bearer documents, such as traveler’s checks, bearer negotiable instruments including bank checks, promissory notes, bills of exchange, and payment orders, which are either made out to the bearer or endorsed without restriction or issued to a fictitious payee, or in any form that allows the right of ownership to be transferred by delivery. The bearer nature of these instruments is not altered by their issuance in an incomplete form, due to the absence of the beneficiary's name, or other data.

Beneficial Owner: The natural person who ultimately owns or exercises effective and final control over the client, as well as the natural person on whose behalf transactions are conducted, or who exercises effective and final control over a legal person or legal arrangement.

Politically Exposed Persons (PEPs):

Foreign Politically Exposed Persons: Persons who have been entrusted with, or have been entrusted with prominent public functions by a foreign country, such as heads of state or government, senior politicians, senior government officials, judicial officials, military officials, senior executives of state-owned companies, and senior officials of political parties.

Domestic Politically Exposed Persons: Persons who have been entrusted with, or have been entrusted with prominent public functions domestically, such as heads of state or government, senior politicians, senior government officials, judicial officials, military officials, senior executives of state-owned companies, and senior officials of political parties.

The term also applies to persons who have been entrusted with, or have been entrusted with prominent functions by an international organization, including members of senior management, such as directors, deputy directors, members of the board, or equivalent positions.

Shell Bank: A bank that has no physical presence in the country in which it was incorporated and licensed, and that is not part of a regulated financial group subject to effective consolidated supervision. Physical presence in the country means the actual management of the bank there, and the presence of a local agent or low-level employees does not constitute physical presence.

Non-Profit Organizations: Any legal person, legal arrangement, organization, or institution that collects and disburses funds for charitable, religious, cultural, educational, social, or solidarity purposes, or for conducting any charitable activities.

UN Sanctions Committee: The UN Sanctions Committees established under UN Security Council Resolutions 1267 (1999) and 1988 (2011) and any subsequent resolutions.

Part Two | Entities Involved in Combating Money Laundering and Terrorism Financing

Chapter One | The National Anti-Money Laundering and Terrorism Financing Committee 

Article 2

Establishment of the Committee and its Composition First

A committee called the “National Anti-Money Laundering and Terrorism Financing Committee” is established, chaired by the Governor of the Central Bank of Libya or his deputy, with membership including:

• Financial Information Unit.
• Public Prosecution.
• Ministry of Justice.
• Ministry of Interior.
• General Intelligence Service.
• Counter-Terrorism Service.
• Customs Authority.

The committee may add other members by a decision of the majority of its members.

Second: Representatives shall be nominated by the entities to which they belong, provided that none of them hold a rank lower than that of Deputy Minister or Department Director. The committee’s formation and the determination of its members’ compensation are decided by the Board of Directors of the Central Bank of Libya.

Third: The deputy director of the unit shall act as the committee's rapporteur, assisted by a number of unit employees to perform secretarial duties. They are appointed, their tasks defined, and their compensation determined by a decision of the committee based on a proposal from the unit director in coordination with him.

Fourth: The committee may form one or more technical subcommittees from among its members or others to study any of the subjects within its jurisdiction. It may seek the assistance of experts in matters within its scope of tasks.

Article 3

Committee Responsibilities 

The committee is responsible for:

• Developing and updating a national strategy to combat money laundering and terrorism financing in coordination with relevant authorities and overseeing its implementation.
• Ensuring the existence of effective mechanisms for local cooperation and coordination among relevant authorities concerning the development and implementation of anti-money laundering and terrorism financing policies and activities, and the financing of weapons of mass destruction proliferation.
• Approving the unit's annual budget.
• Setting the conditions for the appointment and dismissal of the unit director.
• Assessing the risks of money laundering and terrorism financing at the national level.
• Studying and monitoring national, regional, and international developments in combating money laundering and terrorism financing and the proliferation of weapons of mass destruction, and proposing legislative amendments to align with these developments.
• Making recommendations on developing regulatory instructions and guidelines issued by the state’s supervisory authorities.
• Evaluating the effectiveness of the anti-money laundering and terrorism financing system and monitoring the implementation of policies and decisions taken by the committee.
• Coordinating with relevant authorities on international, regional, and bilateral agreements related to combating money laundering and terrorism financing, and proposing the necessary mechanisms to implement these agreements.
• Preparing an annual report outlining the committee’s activities, national, regional, and international developments in combating money laundering and terrorism financing, and its proposals for enhancing internal control and regulation systems within the state.
• Coordinating with relevant authorities in developing public and institutional awareness programs and training personnel working in the field of combating money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
• Coordinating with relevant authorities to develop public policies and collect statistics in the field of combating money laundering, predicate crimes, and terrorism financing.
• Representing the state in international forums and conferences related to combating money laundering and terrorism financing.
• Coordinating local cooperation and information exchange among relevant authorities to contribute to the recovery of crime proceeds.
• Identifying high-risk countries and the measures to be taken towards them, with supervisory authorities responsible for ensuring that financial institutions, businesses, and non-financial professions apply these measures.
• Any other responsibilities issued by a decision of the Council of Ministers.

Article 4

Committee Meetings 

The committee meets at the invitation of its chairman whenever necessary and at least once every three months. Meetings are held during official working hours, or outside of them if necessary. The committee may also invite entities other than its members to attend meetings if approved by a majority of the members. Committee meetings are only valid with the presence of the chairman or his deputy and a majority of the members. Decisions are made by a majority vote of the members present, with the chairman's vote being decisive in the event of a tie. The committee shall establish internal regulations governing its work procedures, rules for exercising its powers, the duration of membership, and mechanisms for changing its members.

Chapter Two | The Financial Information Unit 

Article 5

Establishment of the Unit and its Composition First

An independent unit called the “Libyan Financial Information Unit” is established under the provisions of this law, with legal personality, and submits periodic reports on its activities to the National Anti-Money Laundering and Terrorism Financing Committee.

Second: This unit acts as the national center for receiving reports on suspicious transactions and any other information related to money laundering, predicate crimes, and terrorism financing; it analyzes them and refers the results to the relevant authorities.

Third: The unit is headed by a director appointed for a renewable five-year term by a decision of the committee based on a proposal from its chairman. The director can only be dismissed by a two-thirds majority vote of the committee members.

Fourth: The director of the unit is assisted by a sufficient number of classified employees and contractors, appointed by the unit director’s decision.

Fifth: The unit prepares its annual budget and submits it to the committee for approval, with the unit's budget funded as part of the Central Bank's budget.

Sixth: The committee issues a decision on the unit's working system based on a proposal from the unit director.

Article 6

Access to Information 

The unit may obtain any information it deems necessary for performing its duties, whether held by financial institutions, businesses, non-financial professions, or non-profit organizations. The unit has the authority to obtain any additional information it considers necessary for performing its duties from any entity or person subject to the reporting obligation under Article 27, with the required information to be provided within the period and in the manner specified by the unit. The unit may request any financial, administrative, tax, or criminal information from relevant authorities and other entities it deems necessary for performing its duties. These entities and agencies must provide the required information within the period specified by the Financial Information Unit and in the manner it determines. If the unit determines that a financial institution, business, or non-financial profession has not complied with the provisions of this law, it may notify the relevant supervisory authority.

Article 7

Information Exchange 

The unit may exchange data and information automatically or upon request with any counterpart foreign unit, based on the principle of reciprocity. The unit may enter into memoranda of understanding for exchanging information with relevant authorities and counterpart foreign units. The data and information provided may only be used for anti-money laundering, terrorism financing, and related crimes purposes, and may not be disclosed to any other party or used for investigative or prosecutorial purposes without the consent of the unit providing the information.

Article 8

Confidentiality of Information and Immunity First

The unit director, its employees, and anyone working for it are obligated to maintain the confidentiality of any information they obtain within their scope of work and not use it for purposes other than those stipulated in this law. This obligation continues even after these persons cease working with the unit.

Second: Criminal prosecution or any investigative action regarding crimes attributed to the unit’s employees related to their job duties may only be initiated with the permission of the committee chairman.

Article 9

Unit Instructions 

The unit issues instructions regarding the reporting method and related forms for reporting suspicious transactions and disseminates them to financial institutions, businesses, and non-financial professions.

Article 10

Referral to the Public Prosecution and Other Authorities 

The unit must refer the results of its information analysis to the Public Prosecution when there are reasonable grounds to suspect that money laundering, predicate crimes, or terrorism financing has occurred. The unit may also notify relevant authorities of the results of its information analysis when necessary. The unit may request the Public Prosecution to take precautionary measures regarding what is suspected to be the proceeds of money laundering, predicate crimes, or terrorism financing, in accordance with the provisions stipulated in this law or the Code of Criminal Procedure.

Article 11

Annual Report on Unit Activities 

The unit publishes annual reports containing statistics, patterns, trends, and activities related to combating money laundering and terrorism financing.

Chapter Three | Supervisory Authorities 

Article 12

Supervisory Authority Tasks 

Supervisory authorities are responsible for regulating, monitoring, and supervising the compliance of financial institutions, businesses, and non-financial professions with the requirements established under the provisions of this law, any implementing regulations, decisions, circulars, and related instructions. They must take the following actions in particular:

• Issuing decisions, circulars, and supervisory instructions in the field of anti-money laundering and terrorism financing in coordination with the unit.
• Adopting necessary measures to establish adequate and appropriate standards to prevent criminals and their partners from acquiring significant or controlling interests in financial institutions under their supervision or becoming beneficial owners of them, and preventing them from serving on the board of directors or holding senior management positions. The same measures must be adopted for businesses and non-financial professions.
• Regulating, monitoring, and supervising the compliance of financial institutions and non-financial professions under their supervision with anti-money laundering and terrorism financing measures by applying a risk-based approach, including evaluating and understanding the risks of the supervised entities concerning money laundering and terrorism financing and sector risks, considering the relevant national risks. To achieve this, supervisory authorities conduct on-site inspections or desk audits and have access to any documents, information, or records necessary for performing their tasks.
• Periodically reviewing the risks of financial institutions and non-financial businesses under their supervision, especially in the event of significant changes in the management or operations of any of these institutions or entities.
• Cooperating with other relevant authorities, providing assistance in gathering evidence or conducting judicial investigations or prosecuting cases related to money laundering and terrorism financing and related crimes, and exchanging information with them.
• Rapid and effective cooperation with counterpart authorities in other countries, including the exchange of information.
• Cooperating with the unit in preparing standards to be observed in reporting suspicious transactions, in line with relevant international standards.
• Ensuring that supervised financial institutions and their domestic and foreign branches adopt and implement measures consistent with the provisions of this law, any implementing regulations, decisions, circulars, and related instructions issued by the supervisory authority. This applies to subsidiaries or branches of financial institutions abroad where the measures applied in the host country are less stringent, without conflicting with the laws and regulations in force in that country. They must require supervised financial institutions to notify them and take additional precautionary measures if they cannot apply appropriate anti-money laundering and terrorism financing measures under the laws and regulations in force in the host country. They must also take any supervisory measures concerning the financial institution if it fails to fulfill its obligations in this regard, such as closing the company or branch in the host country.
• Immediately notifying the unit of any information related to suspicious transactions or money laundering or terrorism financing.
• Maintaining statistics on cases related to money laundering or terrorism financing, and the actions and measures taken in implementing the provisions of this law.
• Determining the type and extent of measures that financial institutions and non-financial businesses and professions under their supervision must take under Article 16 to address money laundering and terrorism financing risks.

Article 13

Measures and Penalties Imposed by Supervisory Authorities 

Supervisory authorities, in the event of intentional or grossly negligent non-compliance by a financial institution or any of the non-financial businesses or professions with the obligations stipulated in this law, any implementing regulations, decisions, circulars, or related instructions, shall impose one or more of the following measures and penalties:

• Issuing an order to submit regular periodic reports to address the specific violation.
• Issuing a written warning.
• Suspending the board of directors or managers, or restricting their powers, including appointing temporary management.
• Preventing individuals from holding positions in the business or profession.
• Banning the violator from working in the relevant sector for a period determined by the supervisory authorities.
• Dismissing or requesting the replacement of board members, executive management, or supervisory staff.
• Temporarily suspending the activity, business, or profession, or restricting it.
• Revoking the license, or authorization to practice the activity, or prohibiting the continuation of business, profession, or activity.
• Imposing a fine of not less than ten thousand dinars and not more than one million dinars for each violation. The supervisory authority must notify the unit of the measures and penalties imposed in this regard.

Article 14

Executive Procedures 

Supervisory authorities issue decisions, circulars, and instructions governing the measures that financial institutions, businesses, and non-financial professions under their supervision must take to assist them in implementing the requirements stipulated in this law.

Article 15

Registration of Financial Institutions and Non-Financial Businesses and Professions with Supervisory Authorities 

It is prohibited for any person to engage in the activities of financial institutions or non-financial businesses and professions mentioned in Article 1 of this law without prior registration with the competent supervisory authority, considering the legal systems specific to each business or profession.

Part Three | Combating Money Laundering and Terrorism Financing 

Chapter One | Preventive Measures 

Article 16

Risk-Based Approach 

Financial institutions, businesses, and non-financial professions must identify, assess, and understand the risks of money laundering and terrorism financing they face, take effective measures to manage and mitigate those risks, and continuously monitor and update these measures as necessary. They must also retain a written risk assessment and related information, update it periodically, and make it available to the relevant authorities upon request. Financial institutions, businesses, and non-financial professions must apply enhanced due diligence measures when they consider money laundering and terrorism financing risks to be high, and they may apply simplified due diligence measures when these risks are considered low. However, simplified measures may not be applied when money laundering or terrorism financing is suspected. Financial institutions, businesses, and non-financial professions must identify and assess the risks of money laundering and terrorism financing arising from the development of new products and practices, including risks related to new distribution channels and the use or development of new or advanced technologies for new or existing products, and take adequate measures to manage and mitigate these risks before launching them.

Article 17

Prohibition on Dealing with Shell Banks 

Financial institutions are prohibited from entering into or continuing correspondent banking relationships with shell banks. Financial institutions are also prohibited from entering into or continuing relationships with respondent financial institutions that allow shell banks to use their accounts.

Article 18

Application of Due Diligence Measures to Certain Non-Financial Businesses and Professions 

Dealers in precious metals, precious stones, and other dealers in valuable commodities must apply the requirements stipulated in Article 19 when receiving cash payments that exceed the limit set by the committee or when they suspect money laundering or terrorism financing activities. Real estate agents and brokers must also apply these measures when participating in transactions related to the sale and purchase of real estate.

Article 19

Due Diligence Measures First

Financial institutions are prohibited from maintaining anonymous accounts or accounts under clearly fictitious names.

Second: Financial institutions, businesses, and non-financial professions, considering the results of the risk assessment as per the provisions of Article 16, must carry out the following due diligence measures:

• Identify and verify the identity of clients, whether permanent or occasional, natural or legal persons, or legal arrangements, by examining documents, data, or information related to them from independent and reliable sources.
• Verify that any person claiming to act on behalf of the client is authorized to do so, and apply identity verification measures to this person.
• Identify the beneficial owner of the client and take all reasonable measures to verify this identity, using documents, information, or data from independent and reliable sources to ensure that the financial institution, business, or non-financial profession is satisfied that it has identified the beneficial owner.
• Understand the nature and purpose of the business relationship and request information about it when necessary.
• Continuously monitor the business relationship with the client, including ensuring that transactions arising from this relationship are consistent with the available information about the client, their activities, and the level of risk they represent, including the source of funds if necessary.
• Periodically review the documents, data, and information related to client identification and verification, and ensure that updated and appropriate information is available, especially for high-risk clients.

Third: If the client is a legal person or legal arrangement, financial institutions, businesses, and non-financial professions must identify the nature of the client’s activities, ownership structure, and control structure, and identify the natural persons who hold a controlling share or who control the client through other means. If this natural person cannot be identified, the identity of the natural person holding the position of the responsible manager must be identified.

Fourth: Due diligence measures must be taken in the following cases:

• When establishing business relationships.
• When conducting a transaction involving the transfer of funds to or from the country.
• When there is doubt about the accuracy or adequacy of the documents, data, or information obtained for client identification.
• When there is suspicion of money laundering or terrorism financing.
• When conducting a financial transaction for an occasional client involving an amount exceeding the limit set by the committee, whether this transaction is individual or consists of multiple transactions that appear to be connected.

Fifth: Existing accounts and clients at the time this law comes into effect must be subject to due diligence measures under the provisions of this article within a period specified by the chairman of the National Committee.

Sixth: Financial institutions, businesses, and non-financial professions may defer the completion of client identification and verification procedures if there is suspicion of money laundering or terrorism financing when it is believed, for logical reasons, that executing these procedures would alert the client. In such cases, a suspicious activity report must be sent to the unit.

Seventh: Financial institutions, businesses, and non-financial professions must take sufficient and defined measures when establishing a business relationship or conducting a transaction with a client not physically present for the purposes of identification, to address the risks associated with money laundering and terrorism financing.

Article 20

Simplified Due Diligence Measures 

Supervisory authorities may simplify due diligence measures related to client identification or beneficial owner identification in low-risk cases that do not raise suspicions of money laundering or terrorism financing.

Article 21

Regulatory Instructions on Identity Verification 

Supervisory authorities may determine cases where the client or beneficial owner’s identity verification process can be completed at a later stage following the instructions and regulations issued by them, considering that this is necessary to avoid disrupting the normal course of business, and that it is done as soon as possible from the date of establishing the client relationship, with effective management of money laundering and terrorism financing risks by the financial institution, business, or non-financial profession.

Article 22

Relying on Third Parties for Identity Verification 

Financial institutions, businesses, and non-financial professions may rely on third parties, whether financial institutions or non-financial businesses and professions, to apply the measures stipulated in Article 19, second paragraph 1 to 3, provided that they ensure the following:

a. Immediately obtaining the necessary information from these financial institutions, businesses, or non-financial professions regarding client identification. b. Taking sufficient steps to ensure that these institutions or non-financial businesses and professions will, without delay, provide copies of identification documents and other relevant documents upon request. c. Ensuring that these financial institutions, businesses, or non-financial professions are subject to supervision and oversight and have appropriate procedures related to client identification and record-keeping requirements.

If the financial institution, business, or non-financial profession being relied upon is located in another country, the financial institution, business, or non-financial profession must consider the information available regarding the level of risk in that country to determine the appropriateness of relying on an institution or entity belonging to that country.

In all cases, the primary responsibility for applying these measures rests with the financial institutions, businesses, and non-financial professions relying on the third party.

If the financial institution or non-financial business or profession being relied upon to apply client identification and verification procedures is part of the same financial group, the conditions in paragraph 1 are deemed to have been met if the following are met:

a. The financial group applies identification and verification procedures and has internal systems and record-keeping systems consistent with the provisions of this law. b. The implementation of the procedures mentioned in paragraph a is subject to supervision by a supervisory authority at the group level. c. Any high risks arising from the presence of the financial institution, business, or non-financial profession being relied upon in another country have been appropriately mitigated through the group’s anti-money laundering and terrorism financing policy.

Article 23

Politically Exposed Persons

First: Financial institutions, businesses, and non-financial professions must adopt appropriate risk management systems to determine whether the client or beneficial owner is a politically exposed person. If so, the following actions must be taken:

• Obtaining senior management approval before establishing a business relationship with the client, or to continue with existing clients.
• Taking all reasonable measures to determine the source of wealth and funds of the client.
• Conducting enhanced and ongoing monitoring of the business relationship with the client.

Second: Financial institutions, businesses, and non-financial professions must apply the same procedures mentioned in the previous paragraph to family members of politically exposed persons and persons with close relationships with them.

Article 24

Correspondent Banking Relationships 

In addition to the due diligence measures stipulated in Article 19, financial institutions must take the following measures when establishing cross-border correspondent banking relationships:

• Gathering sufficient information about the respondent financial institution to fully understand the nature of its business, and using publicly available information to assess its reputation and the quality of supervision to which it is subject, including determining whether it or any of its board members or owners of a controlling interest have been subject to investigations regarding money laundering, terrorism financing, or any administrative sanctions or measures.
• Gathering information about the nature of the respondent financial institution's activities.
• Obtaining senior management approval before establishing a correspondent banking relationship.
• Assessing the controls implemented by the respondent financial institution concerning anti-money laundering and terrorism financing.
• In cases of intermediary payment accounts, ensuring that the respondent financial institution has verified the identities of its customers who have direct access to these accounts, has implemented ongoing monitoring mechanisms for them, and can provide information related to identifying these customers upon request.

Article 25

Inability to Fulfill Obligations

If a financial institution, business, or non-financial profession is unable to fulfill the client identification and verification procedures outlined in Articles 19 and 24, it must refrain from opening the account, establishing a business relationship with the client, or executing any transactions on their behalf, or terminate the business relationship. It must also consider submitting a suspicious activity report to the unit regarding the client.

Article 26

Information Related to Transfers 

Financial institutions must obtain and verify the information related to the originator and the beneficiary for internal or external transfers exceeding the limit set by the committee or its equivalent in other currencies, and retain it in accordance with the instructions issued by the Central Bank. Financial institutions must include this information in the payment message or form accompanying the transfer and transmit all this information when acting as an intermediary in the payment chain. The instructions specify the information that must be included in the message.

Financial institutions, when receiving incoming transfers or acting as an intermediary in the payment chain, must take necessary measures to identify transfers that do not contain complete information about the originator and beneficiary, and obtain the missing information and verify it with the executing financial institution or the beneficiary. If obtaining the missing information is not possible, the financial institution must take risk-based policies and procedures to determine when to accept, suspend, or reject the transfer.

Article 27

Reporting Information to the Unit 

Financial institutions, businesses, and non-financial professions are obligated to report to the unit without delay any transaction or any attempt to conduct a transaction, regardless of its value, if they suspect or have reasonable grounds to believe that the transactions involve funds derived from a crime or are related to money laundering or terrorism financing activities.

Lawyers and other legal professionals and independent accountants may refrain from reporting under the previous paragraph if the information related to the suspected transaction was obtained in circumstances where they are subject to professional confidentiality.

No criminal or civil action may be taken, nor disciplinary or administrative measures imposed against financial institutions, businesses, and non-financial professions, or their directors or employees, for violating any prohibition on reporting information under contract or law if they acted in good faith in submitting a report or any other information to the unit.

Article 28

Non-Disclosure to Clients 

Financial institutions, businesses, and non-financial professions, their directors, employees, and all other workers are prohibited from disclosing to the client or others any reports or information submitted to the unit, or related to investigations into money laundering or terrorism financing cases, except for disclosures or communications among directors, employees, and all other workers of the financial institutions or businesses and non-financial professions, and lawyers and relevant authorities.

Article 29

Record-Keeping First

Financial institutions, businesses, and non-financial professions must keep records of the following information and ensure that these records and the information contained therein are readily available for review by the Financial Information Unit and other relevant authorities:

• Documents obtained under the provisions of this chapter that prove the identities of clients and beneficial owners, account files, commercial correspondence, and the results of any analysis conducted, kept for at least five years after the end of the business relationship or after the transaction date for occasional transactions.
• Transaction records that allow the reconstruction of transactions attempted by clients or completed by them to present them as evidence during investigations into related cases, kept for at least five years after the attempt to execute the transaction or after it is completed.

Second: The relevant authority may request that these documents, records, or information or reports be retained for longer in specific cases.

Article 30

Provision of Information 

Financial institutions, businesses, and non-financial professions must provide information and documents to the relevant authorities, each within its jurisdiction, upon request, and may not invoke professional confidentiality to avoid fulfilling this obligation.

Article 31

Enhanced Due Diligence 

Financial institutions, businesses, and non-financial professions must comply with the following:

• Apply enhanced due diligence to business relationships and transactions with natural and legal persons and legal arrangements, including financial institutions, from high-risk countries as identified by the National Committee.
• Pay special attention to all complex and unusually large transactions and all unusual patterns of transactions that have no apparent legitimate purpose or economic rationale.
• Investigate the background and purpose of these transactions as far as possible, document the results of any analysis in writing, keep these results for at least five years, and make them available to the unit or relevant authorities for review upon request.

Article 32

Internal Programs for Combating Money Laundering and Terrorism Financing

Financial institutions, businesses, and non-financial professions must prepare, develop, and implement anti-money laundering and terrorism financing programs, which include the following elements:

• Appropriate internal policies, standards, and controls to ensure the application of high standards when employing individuals.
• Continuous training of employees and workers to qualify them in the field of combating money laundering and terrorism financing.
• Internal audit arrangements to review compliance with the measures taken to implement this law and assess their effectiveness.

If the financial institution or non-financial business or profession is part of a financial group, it must establish a group-wide anti-money laundering and terrorism financing system that applies to all its branches and subsidiaries and includes the following:

a. Policies and procedures for exchanging information related to client identification and managing money laundering and terrorism financing risks. b. Allowing branches and subsidiaries to provide information related to clients, their accounts, and transactions to the compliance, audit, and anti-money laundering and terrorism financing functions of the group to meet relevant requirements. c. Establishing adequate safeguards to maintain the confidentiality of exchanged information and how it is used.

Article 33

Establishment of a Compliance Arrangement 

Financial institutions, businesses, and non-financial professions must establish an appropriate administrative arrangement at the management level to ensure compliance with the requirements of this law and the circulars and instructions issued under it.

Article 34

Branches and Subsidiaries Abroad 

Financial institutions with branches or subsidiaries abroad that own the majority of shares must ensure that these branches and subsidiaries implement the requirements stipulated in this section when the equivalent measures applied in the host country are less stringent, without conflicting with the laws and regulations in force in that country. They must notify the supervisory authority and take additional precautionary measures if they cannot apply appropriate anti-money laundering and terrorism financing measures in light of the laws and regulations in force in the host country.

Chapter Two | Declaration of Currency and Bearer Negotiable Instruments at Customs 

Article 35

Declaration at Customs 

Every person entering or leaving Libya who is carrying currency or bearer negotiable instruments or arranging for their transfer into or out of Libya through another person, postal service, or shipping service, or by any other means, equal to or exceeding the limit set by the committee, must declare the value of these currencies or instruments to the customs authorities. The customs authorities may request information from the carriers about the origin of this currency or bearer negotiable instruments and their intended use. This information, including the declaration form, must be forwarded to the unit, which will include this information in its database. The Customs Authority issues a decision to implement this chapter.

Article 36

Confidentiality of Declaration Information 

Customs officers are obligated to maintain the confidentiality of information obtained within their scope of work, even after their service ends. This information may only be used for the purposes stipulated in this law.

Article 37

Cooperation of Customs Authorities 

Customs authorities must cooperate with relevant authorities at the national and international levels regarding the matters listed in this chapter and information related to detecting unusual movements of precious metals or precious stones across customs borders.

Chapter Three | Criminalization 

Article 38

Money Laundering Crime First

A person commits a money laundering crime if they engage in any of the following behaviors:

a. Converting or transferring funds with knowledge that such funds are the proceeds of a crime with the intent of concealing or disguising the illicit origin of the funds, or of assisting any person involved in the commission of a crime to evade the legal consequences of that crime. b. Concealing or disguising the true nature, source, location, disposition, movement, ownership, or rights with respect to funds with knowledge that such funds are the proceeds of a crime. c. Acquiring, possessing, or using funds with knowledge that such funds are the proceeds of a crime at the time of receipt.

Second: The criminalization provided for in the previous paragraph includes participating in money laundering, whether by way of involvement, conspiracy, incitement, assistance, facilitation, counseling, or other forms of participation.

Third: It is not required to prove that the funds are the proceeds of a crime by a conviction for the predicate offense.

Fourth: Money laundering is considered an independent crime from the predicate offense, and punishing the perpetrator of the predicate offense does not preclude punishment for money laundering or any related crimes.

Article 39

Terrorism Financing Crime First

A person is considered to have committed the crime of terrorism financing if they intentionally provide or collect funds, or make them available by any means, directly or indirectly, with the unlawful intention of using them or with the knowledge that they will be used, wholly or partially, to commit a terrorist act or by a terrorist or terrorist organization.

Second: This includes financing the travel of individuals for the purpose of committing, planning, preparing, participating in, facilitating, or providing training for terrorist acts or receiving such training.

Third: The crime under this article is considered to have been committed even if the terrorist act did not occur or was not attempted, regardless of the place where it was intended to be committed, where the terrorist or terrorist organization is located, or whether the funds were used to commit the act.

Fourth: The criminalization provided for in the previous paragraph includes participating in the financing of terrorism, whether by way of involvement, conspiracy, incitement, assistance, facilitation, counseling, or other forms of participation. The criminalization also includes organizing or directing others to commit or attempt to commit the acts provided for in the first paragraph.

Chapter Four | Penalties 

Article 40

General Provisions on Penalties 

Without prejudice to any more severe penalty provided for in another law, the crimes under this law are punishable by the penalties stipulated in the following articles of this chapter. An accomplice to any of these crimes shall be punished with the same penalty as the principal offender, and in all cases, the confiscation of seized funds and means shall be ordered, and the attempt shall be punished with the same penalty as the completed crime.

Article 41

Penalty for Money Laundering 

The crime of money laundering, as provided for in Article 38 of this law, is punishable by imprisonment for a period not exceeding seven years and a fine of not less than 100,000 Libyan dinars and not more than 1,000,000 Libyan dinars.

Article 42

Penalty for Terrorism Financing 

The crime of terrorism financing, as provided for in Article 39 of this law, is punishable by imprisonment for a period not exceeding ten years and a fine of not less than 100,000 Libyan dinars and not more than 1,000,000 Libyan dinars.

Article 43

Penalties for Offenses Related to Money Laundering First

A person is considered to have committed a crime and is punishable by a fine of not less than 20,000 Libyan dinars and not more than 250,000 Libyan dinars or imprisonment for a period not exceeding five years, or both penalties, for any of the following acts if done intentionally or through gross negligence:

• Establishing a shell bank in Libya.
• Entering into or continuing a business relationship with: a. Shell banks. b. Respondent financial institutions in a foreign country that allow the use of their accounts by shell banks.
• Failing to retain sufficient, accurate, and up-to-date information about beneficial owners and control structures of legal persons and legal arrangements as required by Articles 19, 23, and 31.
• Failing to take due diligence measures towards clients and manage risks as required by Articles 16, 18, and 19.
• Failing to take measures related to correspondent banking as required by Article 24.
• Failing to take monitoring measures as required by Articles 21 and 31.
• Failing to keep records as required by Articles 29 and 31 or refusing to deliver them or destroying or removing them.
• Failing to implement internal control programs as required by Article 32.
• Failing to provide information or records or failing to secure access to them promptly when requested by judicial or supervisory authorities, law enforcement agencies, the unit, or other relevant authorities under Articles 6, 30, and 53.
• Failing to implement measures required by Article 25.

Second: The penalties provided for in this article do not preclude the possibility of relevant authorities imposing sanctions or administrative measures on those who commit the acts mentioned in the first paragraph.

Article 44

Aggravating Circumstances 

The penalties stipulated in the previous articles shall be doubled:

• If the perpetrator committed the crime through an organized criminal group or a terrorist organization.
• If the perpetrator committed the crime by exploiting his authority or influence, through a financial institution, a non-profit organization, or by engaging in any of the activities or non-financial professions specified, or by exploiting the facilities granted to him by his position or social or professional activity.
• In the case of recidivism.

Article 45

Ancillary Penalty 

The court may impose an ancillary penalty on a person convicted of one of the crimes provided for in this law, preventing them permanently or temporarily from engaging in any work, profession, or activity they exploited to commit the crime.

Article 46

Penalty for Non-Declaration 

A person who violates the provisions of Article 35 or provides a false declaration about currency or bearer negotiable instruments or intentionally or through gross negligence conceals facts that should be declared is punishable by imprisonment for a period not exceeding one year and a fine of not less than half the value of the funds subject to the crime and not exceeding their value, or one of these penalties. If the offender is a legal person, a fine of not less than the value of the funds subject to the crime and not exceeding twice their value is imposed.

Article 47

Penalty for Disclosure of Information 

Anyone who violates the obligation to maintain the confidentiality of information stipulated in Articles 8, first paragraph, 28, and 36 of this law shall be punished by imprisonment for a period not exceeding six months and a fine of not less than 10,000 Libyan dinars and not more than 100,000 Libyan dinars, or one of these penalties.

Article 48

Criminal Liability of the Legal Person 

A legal person is criminally liable for the crimes provided for in this law if they are committed in its name, on its behalf, or by one of its board members, directors, representatives, employees, or affiliates.

Article 49

Penalty for the Legal Person 

A legal person convicted of a money laundering or terrorism financing crime is punishable by a fine equal to the value of the funds subject to the crime, and not less than 100,000 Libyan dinars. A legal person convicted of any other crime provided for in this law is punishable by the fine provided for therein, with its upper and lower limits doubled. The court may order the legal person convicted to cease its activities, in whole or in part, permanently or temporarily. It may also order that it be placed under judicial guardianship or that its operations be liquidated. In all cases, the court orders the publication of the conviction. The punishment of the legal person does not preclude the prosecution of the natural person for the crime and their punishment with the penalty provided for it in this law.

Article 50

Penalty for Operating Without a License

A person who engages in the activities of a financial institution or the non-financial businesses and professions mentioned in Article 1 of the law without prior registration with the competent supervisory authority is punishable by imprisonment and a fine of not less than 100,000 Libyan dinars.

Article 51

Exemption from Civil or Criminal Liability for Disclosure of Professional or Banking Secrets 

No civil, criminal, or administrative liability shall be imposed on a person who reports in good faith any suspicious transactions under the provisions of this law or provides any information or data about them, even if it contravenes the requirements of maintaining professional or banking secrecy. The same provision applies to directors, officials, and employees of financial institutions or non-financial businesses and professions if they submit reports on suspicious transactions in good faith under the provisions of this law.

Article 52

Exemption from Punishment or Suspension of Execution 

Without prejudice to Article 59, the court may:

• Exempt the perpetrator of a money laundering or terrorism financing crime from the penalties of imprisonment and fine stipulated in this law or mitigate them if they report the crime to the relevant authorities and identify the other persons involved before the relevant authorities become aware of it.
• Order the suspension of the execution of the penalty if the report is made after the relevant authorities have become aware of the crime and the persons involved in it and if the report contributes to the arrest of the other perpetrators or the seizure of the means and proceeds of the crime.

Chapter Five | Precautionary Measures and Confiscation 

Article 53

Access to Data and Information 

The Attorney General, or his designee, may order the review or obtaining of any information or data related to accounts or deposits, or any other funds or transactions, held by financial institutions, non-profit organizations, or non-financial businesses and professions, that help uncover facts related to any of the crimes stipulated in this law.

Article 54

Seizure of Correspondence and Publications, Monitoring and Recording Communications 

The Attorney General, or his designee, may order the seizure of all types of correspondence, printed materials, postal boxes, and telegrams, and the monitoring of all means of communication and the recording of any activities carried out in public or private places if this measure helps uncover facts related to any of the crimes stipulated in this law. The order for seizure, monitoring, or recording must be reasoned and valid for no more than ninety days. This period may be extended by order of the competent court.

Article 55

Freezing of Funds and Suspension of Transactions by the Unit 

The unit director may order the freezing of funds and the suspension of transactions suspected of being related to money laundering, predicate crimes, or terrorism financing for a period not exceeding five working days. The Attorney General, at the unit's request, may order the extension of the freezing of funds and the suspension of transactions for a period of up to ten days for further analysis.

Article 56

Freezing and Seizure of Funds by the Public Prosecution 

The Attorney General, or his designee, may issue an order to take precautionary measures to freeze or seize funds suspected of being related to money laundering, predicate crimes, or terrorism financing and any property of similar value, without prejudice to the rights of third parties acting in good faith. If the funds are held by a financial institution, the Central Bank must notify the seizure order. The concerned parties may appeal to the court within thirty days from the date of enforcement of the order. The court's decision in this regard is final.

The funds subject to seizure remain the property of their owners at the time of the seizure, provided they are managed by the Office for the Management of Seized and Confiscated Assets.

Article 57

Seizure by the Customs Authority 

In the event of suspicion of money laundering, predicate crimes, or terrorism financing, or in the case of non-declaration or false declaration as stipulated in Article 46, the Customs Authority must seize the currency or bearer negotiable instruments for a period not exceeding 45 days and notify the unit immediately. The Attorney General may extend the seizure period for a similar period at the unit's request.

Article 58

Management and Sale of Seized and Confiscated Assets 

An office called the Office for the Management of Seized and Confiscated Assets is established by a decision of the Attorney General. It reports directly to him and is responsible for managing seized and confiscated assets, collecting, and preserving all data related to those assets and the actions taken regarding them. With the Attorney General's permission, the assets that may decrease in value due to management or have high preservation costs disproportionate to their value may be sold. In this case, the seizure remains on the sale proceeds.

Article 59

Confiscation First

Without prejudice to the rights of third parties acting in good faith, if the defendant is convicted of a predicate crime, money laundering, or terrorism financing, the court must, in addition to the original penalties, order the confiscation of the following:

• The proceeds of the crime, and any funds commingled with or derived from them or replaced by them.
• The funds that are the subject of the crime or the means used to commit it.

Second: The court shall order the confiscation of an equivalent value of the funds mentioned in the previous paragraph if the funds to be confiscated cannot be located, have been transferred to third parties acting in good faith in return for a value commensurate with them, or if the confiscation of the funds is impossible for any reason.

Third: If the crime is proven without a conviction, either because the defendant is unknown, the criminal case has lapsed, or for any other reason, the Public Prosecution must refer the case to the competent court to issue a confiscation order. The court issues its order to confiscate the funds if there is sufficient evidence that they are subject to confiscation as stipulated in the first paragraph of this article.

Article 60

Nullification of Transactions on Confiscated Assets 

Without prejudice to the rights of third parties acting in good faith, the court may nullify any contract, agreement, or transaction that is proven to be intended to prevent the confiscation of the funds stipulated in the previous article.

Article 61

Transfer of Confiscated Funds to the State Treasury 

Funds confiscated under the provisions of this law shall be transferred to the state treasury.

Part Four | International Cooperation 

Chapter One | General Provisions 

Article 62

Obligation of International Cooperation 

Relevant authorities must provide assistance to counterpart authorities in other countries for extradition and mutual legal assistance in investigations and criminal proceedings related to money laundering and terrorism financing, in accordance with the rules established by this law, the Code of Criminal Procedure, and bilateral or multilateral agreements to which Libya is a party, or the principle of reciprocity, in a manner that does not conflict with the fundamental principles of the Libyan legal system.

Article 63

Dual Criminality Requirement 

A request for mutual legal assistance submitted under this law shall not be executed unless the act that is the subject of the request constitutes a crime under both Libyan law and the law of the requesting state, regardless of the description given to the act by either law. If the measure requested does not require coercive actions, assistance may be provided even if the dual criminality requirement is not met under this article.

Article 64

Receipt of Cooperation Requests 

Requests for mutual legal assistance submitted by foreign competent authorities and related to money laundering and terrorism financing cases must be referred to the Attorney General, and the requests and their attachments must be accompanied by an Arabic translation.

Article 65

Contents of Cooperation Requests First

Requests for legal assistance or extradition of criminals must include:

• The name and position of the foreign authority responsible for investigating or prosecuting the case.
• A statement of the purpose of the request and any relevant comments.
• A statement of the facts supporting the request.
• The identity of the person concerned, especially their name, date of birth, marital status, nationality, address, location, and occupation.
• The information needed to identify and trace the persons concerned, the means, and the proceeds involved.
• The legal text that criminalizes the act and a statement of the applicable law, and any statement about the penalty that can be imposed on the perpetrator.
• Details of the assistance requested and any specific procedures the requesting state wishes to apply.

Second: In addition to the previous information, requests must include the following information in specific cases:

• A statement of the measures requested, in the case of a request for temporary measures.
• A statement of the facts and arguments related to the request, to enable the judicial authorities to issue a confiscation order under the law, in the case of a request for the issuance of a confiscation order.

Third: In the case of a request for the enforcement of an order related to a temporary measure or confiscation:

• A certified copy of the order and a statement of the reasons for its issuance if not included in the order itself.
• A document confirming that the order is enforceable and not subject to ordinary appeal.
• A statement of the extent to which the order is to be enforced and the amount to be recovered from the value of the assets.
• Any information regarding third-party rights to the means, proceeds, property, or other related items, when possible and necessary.
• The original or certified copy of the court judgment or any other document indicating the conviction of the accused, the imposed penalty, the enforceability of the judgment, and the remaining period of the sentence, in the case of a request for the extradition of a person convicted of a crime.

Article 66

Request for Additional Information 

The Attorney General or the relevant authority may request additional information from the foreign competent authority if such information is necessary to execute the request or facilitate its execution.

Article 67

Confidentiality of the Request 

The request must be kept confidential if specified in the request. If confidentiality cannot be maintained, the requesting authority must be notified immediately.

Article 68

Postponement of Request Transmission 

The Attorney General may postpone the transmission of the request to the relevant authorities responsible for its execution if the requested measure or order is likely to conflict significantly with an ongoing investigation or case, and the requesting authority must be notified immediately.

Chapter Two | Mutual Legal Assistance 

Article 69

Forms of Assistance 

Forms of mutual legal assistance include, in particular:

• Obtaining evidence from individuals or taking their statements.
• Assisting in the appearance of detainees, voluntary witnesses, or others before the judicial authorities of the requesting state to provide evidence or assist in investigations.
• Serving judicial documents.
• Executing search operations and freezing and seizure measures.
• Inspecting objects and places.
• Providing information and items proving the charge and expert reports.
• Providing originals or certified copies of documents and records, including government, banking, financial, corporate, and business records.
• Identifying or tracing the proceeds of crime, funds, means, or other items for purposes of evidence or confiscation.
• Confiscating funds.
• Executing freezing or seizure measures and other temporary measures.
• Executing other investigative requests.
• Any other form of mutual legal assistance, as long as it does not conflict with Libyan laws.

Article 70

Refusal of Request First

A request for mutual legal assistance may be refused in the following cases:

• If the request is not issued by a competent authority under the law of the requesting state, or if the request is not sent in accordance with Libyan laws, or if its contents are in substantial conflict with Article 65 of this law.
• If the execution of the request is likely to harm the security, sovereignty, public order, or essential interests of the state.
• If the crime related to the request is the subject of an ongoing criminal case or has been adjudicated with a final judgment.
• If there are substantial reasons to believe that the requested measure or order targets the person concerned solely because of their origin, religion, nationality, race, political views, or gender.
• If it is impossible to issue or execute the requested measure due to the statute of limitations applicable to the crime of money laundering or terrorism financing under Libyan law or the law of the requesting state.
• If the requested measure is unenforceable under the law.
• If the decision in the requesting state was made under circumstances that did not provide sufficient guarantees regarding the rights of the accused.

Second: A request for mutual legal assistance may not be refused based on mandatory secrecy imposed on financial institutions or merely because the crime involves tax matters.

Article 71

Notification of Refusal Decision 

If the request is refused, the Attorney General or the relevant authority must immediately notify the foreign competent authority of the refusal decision and the reasons for it.

Article 72

Execution of Investigation Requests under Libyan Law 

The execution of requests for mutual legal assistance related to an investigation is subject to the procedural rules stipulated in Libyan law, and the foreign competent authority may assign a representative to attend the investigation.

Article 73

Execution of Temporary Measures under Libyan Law 

Requests for temporary measures are executed in accordance with the provisions of Libyan law. If Libyan law lacks an equivalent measure to the requested measure, the most appropriate measure under the law is applied. The provision of the previous paragraph also applies to orders lifting temporary measures, provided that the order lifting the temporary measure is preceded by notification of the requesting state.

Article 74

Requests Related to Confiscation 

If a request for mutual legal assistance involves executing a confiscation order issued by the courts of the requesting state, the Public Prosecution must execute it in accordance with the rules stipulated in bilateral or multilateral agreements to which Libya is a party or based on the principle of reciprocity. If the request is not based on a judgment, the Public Prosecution must refer it to the competent court for execution. The confiscation order applies to the assets subject to the provisions of this law and located in Libya.

Article 75

Disposition of Confiscated Assets 

Without prejudice to the rights of third parties acting in good faith, Libyan authorities may dispose of assets confiscated based on a request from foreign authorities unless there is an agreement with the requesting state providing otherwise.

Article 76

International Agreements or Arrangements 

Libyan authorities may enter into bilateral or multilateral agreements or arrangements regarding the matters under investigation or proceedings in one or more states to establish joint investigation teams or conduct joint investigations. In the absence of such agreements or arrangements, joint investigations may be conducted on a case-by-case basis.

Chapter Three | Extradition 

Article 77

Extradition in Money Laundering and Terrorism Financing Crimes 

For the purposes of this law, money laundering and terrorism financing crimes, and related crimes, are extraditable offenses, and these crimes are not considered political crimes, even if they are related to a political crime or motivated by political reasons.

Article 78

Cases Where Extradition is Prohibited 

In addition to what is stipulated in the Code of Criminal Procedure, extradition requests may be denied in the following cases:

• If there are substantial reasons to believe that the extradition request was made to accuse or punish a person because of their gender, origin, religion, nationality, race, political views, or that the execution of the request will harm their situation for any of these reasons.
• If there are substantial reasons to believe that the person to be extradited has been or will be subjected to torture or cruel, inhuman, or degrading treatment, or if the person will not or will not be granted a minimum standard of guarantees in the criminal proceedings according to internationally recognized standards.

Article 79

Cases Where Extradition May Be Refused 

Extradition requests may be refused in the following cases:

• If there are ongoing judicial investigations in Libya against the person requested for extradition concerning the crime related to the request.
• If the crime related to the extradition request was committed outside the territory of either country and Libyan law does not provide for jurisdiction over crimes committed outside its territory concerning the crime subject to the request.
• If the person requested for extradition is likely to face trial or judgment by an irregular or exceptional court or a special court or body.
• If it is evident from the circumstances of the case that the extradition of the person concerned would be contrary to humanitarian considerations due to their age, health, or other personal circumstances.
• If extradition is requested to enforce a judgment in absentia where the convicted person, for reasons beyond their control, did not have sufficient time before the trial or an opportunity to arrange for their defense, and will not have the opportunity to have their case reconsidered in their presence and in a face-to-face hearing.
• If the Libyan judicial authorities have assumed jurisdiction over the crime.

Article 80

Prosecution in Case of Refusal to Extradite 

If an extradition request is refused merely because the person requested for extradition is a Libyan citizen, the case is referred to the relevant authorities to initiate criminal proceedings against the person concerned who is the subject of the extradition request.

Part Five | Final and Transitional Provisions 

Article 81

Implementation of UN Security Council Resolutions First

The Council of Ministers, based on the proposal of the National Committee, shall establish a body to implement UN Security Council resolutions under Chapter VII of the United Nations Charter on terrorism, terrorism financing, and the proliferation of weapons of mass destruction.

Second: The body shall designate:

• Persons, groups, and entities reasonably suspected or believed to have committed or attempted to commit terrorist acts, participated in, or facilitated the commission of such acts, or persons acting on behalf of or at the direction of a designated person.
• Any entity reasonably suspected or believed to be owned or controlled, directly or indirectly, by any person, group, or entity mentioned in paragraph (a) above.

Third: The body may consider designation requests from any source, including, but not limited to, requests from its members or any government agency or from other countries.

Fourth: The body may collect and request any information from any competent authority or other entities to determine whether any person, group, or entity should be designated.

Fifth: The body shall notify all financial institutions, businesses, and non-financial professions of its decision to designate the person, group, or entity without delay. The decision shall be published in the official gazette.

Sixth: Any person is required to freeze all funds and economic resources belonging to any of the following entities, whether wholly owned or jointly owned with any other entity, and whether directly or indirectly in their possession or under their control, without delay or prior notice:

• Any person, group, or entity designated by the body under paragraph (Second); or acting on their behalf or under their direction or controlled by them directly or indirectly.
• Any person, group, or entity designated by the United Nations Sanctions Committee or acting on their behalf or under their direction or controlled by them directly or indirectly.

Seventh: Any person must notify the body of the freezing measure within three days of its implementation.

Eighth: All persons are prohibited from providing any funds, other assets, economic resources, or related financial or other services, directly or indirectly, and in whole or in part, to any of the persons mentioned below unless authorized or otherwise notified according to UN Security Council resolutions and the regulations issued under paragraph (Tenth) below:

• Those referred to in paragraph Sixth – (a) and (b) above.
• Those owned or controlled directly or indirectly by any person referred to in paragraph Sixth – (a) and (b) above.
• Those acting on behalf of any person referred to in paragraph Sixth – (a) and (b) above or under their direction.

Ninth: No civil, criminal, or administrative liability shall be imposed on any person who, in good faith, freezes funds under the provisions of paragraph Sixth or applies the provisions of paragraph Seventh above.

Tenth: The Council of Ministers shall issue regulations for the implementation of this article. These regulations shall include, but are not limited to, the review of designations, exemptions from the obligation to freeze, reporting on designations, and monitoring compliance.

Article 82

Penalty for Non-Compliance with the Provisions Relating to the Application of UN Security Council Resolutions

Any person who intentionally or through gross negligence violates the provisions of paragraphs Sixth and Eighth of the previous article shall be punished with a fine of not less than 20,000 Libyan dinars and not more than 250,000 Libyan dinars or imprisonment for a period not exceeding five years, or both penalties. Any person who intentionally or through gross negligence fails to comply with the provisions of paragraph Seventh of the previous article shall be punished with a fine of not less than 5,000 Libyan dinars and not more than 50,000 Libyan dinars. The application of the previous two paragraphs does not preclude the application of Article 13 of this law to financial institutions, businesses, and non-financial professions when they violate the provisions of the regulations issued under paragraph Tenth of the previous article.

Article 83

Issuance of Implementing Regulations

If necessary, the Council of Ministers, based on the proposal of the committee, shall issue the implementing regulations necessary to implement the provisions of this law without conflicting with the competencies of the entities mentioned therein.

Article 84

Repeal of Previous Law

Law No. 2 of 2005 is repealed, provided that the decisions, circulars, and instructions issued under it remain in effect, to the extent that they do not conflict with the provisions of this law.

Article 85

Publication in the Official Gazette

This law shall be published in the official gazette and shall come into force from the date of its publication.