Exclusive: Central Bank Opens Foreign Transfers for Private Clinics, Capped at $500,000 Annually

Our source has obtained a copy of a circular issued by the Central Bank of Libya allowing banks to make direct foreign transfers to private medical service companies (private clinics), provided their annual imports do not exceed $500,000 (five hundred thousand US dollars). The transfers are intended to import spare parts, equipment, and medical devices of an urgent nature for the clinics’ own use, through the coverage request system established for this purpose.

The Central Bank’s circular further stated that the following rules and conditions must be observed:

• The maximum amount for a single foreign transfer to private medical service companies (private clinics) is $250,000 (two hundred and fifty thousand US dollars), or its equivalent in other foreign currencies.
• Private medical service companies (private clinics) must be operational and actively conducting business, with supporting documentation provided. They must also hold a valid Central Bank of Libya (CBL) banking code.
• A private medical service company may not apply for a second payment until the first payment has been fully executed and supporting documents confirming the supply, shipment, and arrival of the goods have been submitted. The most important of these documents are customs declarations proving that the goods have entered the country.

The circular added that banks must complete all procedures for foreign transfers within a maximum of two weeks from the date they receive their customers’ requests.

The company requesting the bank transfer must maintain an account with the bank executing the transfer. The requested transfer amount must be 100% fully covered in Libyan dinars from the available balance in the account at the time the transfer is executed.

The circular also stipulates that companies must submit an undertaking to import the goods into Libya through official entry points and use the funds for the purpose specified in the transfer request.

Companies must provide original customs declarations proving that the imported goods entered Libya through official entry points. These declarations must be submitted to the banks within three months of the transfer date. Banks are required to notify the Banking and Monetary Control Department of any failure to submit the required customs declarations.

The circular further requires the company requesting the transfer to submit a pro forma invoice issued and approved by the exporting or manufacturing company, or one of its authorized agents registered with the relevant authorities in the exporting country. The invoice must specify the items and value of the goods to be imported.

The company issuing the pro forma invoice must be registered with the relevant authorities, including the Ministry of Economy in the country where the invoice was issued, as well as the commercial registry in its country of domicile. The invoice must also specify the port of arrival and the shipping method. Pro forma invoices issued by general trading companies of any kind will not be accepted.

The Central Bank’s circular concluded by requiring banks to refrain from executing transfers for private medical service companies (private clinics) that have previously made transfers but failed to submit the required customs declarations within the specified period.

Banks must also comply with all anti-money laundering and counter-terrorism financing regulations issued under the relevant laws and instructions.

In addition, banks are required to exercise enhanced due diligence to ensure that all documents required for the transfers are available, verify the accuracy of the information provided by the company requesting the transfer, and confirm that no circumstances exist that would prevent the transfer from being executed.