

Currently released so far... 12689 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
2011/05/18
2011/05/19
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AF
ASEC
AR
AEMR
AMGT
AE
AU
AID
AORC
APER
AS
AM
AFIN
AMED
AJ
AGR
ACOA
ANET
ASIG
ABLD
AL
AA
APECO
AGAO
AY
AGMT
APEC
AINF
AG
ACS
AECL
AFFAIRS
ABUD
ASUP
ADANA
AADP
AMCHAMS
ARF
ASEAN
ADPM
ATRN
ALOW
APCS
ADCO
ACAO
AORG
AROC
AO
AODE
ACABQ
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AFSI
AFSN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
ASCH
AFU
AMG
ATPDEA
ASECKFRDCVISKIRFPHUMSMIGEG
AORL
ADM
AN
AIT
BU
BR
BL
BO
BA
BB
BG
BM
BBSR
BH
BEXP
BK
BD
BTIO
BT
BE
BY
BF
BX
BP
BRUSSELS
BILAT
BIDEN
BC
BMGT
BWC
BN
BTIU
CH
CG
CF
CU
CE
CVIS
CASC
CO
CS
CA
CIDA
CBW
CW
CMGT
CI
CODEL
CY
CPAS
CJAN
CD
CWC
CDG
CIA
CL
CROS
CAPC
CTR
CT
CR
CBSA
CEUDA
COM
CFED
CV
CACS
CARSON
CLINTON
CN
CONS
CM
CAC
CIC
COPUOS
CDC
CONDOLEEZZA
CICTE
COUNTER
COUNTRY
CBE
CKGR
CHR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
COE
CARICOM
CB
CSW
CITT
CACM
CDB
CJUS
CTM
CAN
CLMT
CBC
CNARC
CIS
EG
EZ
EUN
ECON
ETRD
ECPS
EFIN
ENRG
ETTC
EPET
EINV
EAID
EAIR
EWWT
EU
EAGR
EC
ELAB
EIND
EN
EMIN
ESENV
ENNP
EFIS
ELTN
ET
ECIN
EFTA
ES
EINT
EI
ENGR
ETRDEINVECINPGOVCS
ENVI
ETRDECONWTOCS
ECINECONCS
ELN
ELECTIONS
ENVR
EXTERNAL
EXIM
ETRO
ENIV
ESA
ER
EK
EUR
EFINECONCS
EUMEM
EUREM
EPA
ERNG
ENERG
ECA
ETRC
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
EAIG
EUC
ERD
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
IS
IZ
IR
IC
IO
IN
ID
IGAD
IT
ILC
IAEA
ITU
ICAO
IMO
IBRD
IMF
ICJ
IAHRC
ITF
INRA
INRO
IWC
IQ
IV
ICRC
ICTY
INRB
IEFIN
ILO
ITRA
ITALY
IBET
ISRAELI
IL
INTELSAT
IRC
IDP
ICTR
IRAQI
IPR
IIP
INMARSAT
ITPGOV
ITALIAN
INTERNAL
IRS
IA
INTERPOL
IEA
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
INDO
IDA
ISLAMISTS
KSPR
KNNP
KWBG
KAWK
KISL
KPAO
KN
KS
KIPR
KCRM
KDEM
KIRF
KJUS
KHLS
KSCA
KOMC
KAWC
KV
KFRD
KWMN
KTIP
KPWR
KSUM
KGHG
KTIA
KTFN
KIRC
KCOR
KACT
KMDR
KGIC
KOLY
KUNR
KIDE
KMPI
KPKO
KCFE
KVPR
KRAD
KPAL
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KTEX
KTDB
KFSC
KZ
KSEP
KFLU
KE
KU
KPLS
KRVC
KRIM
KSTH
KG
KFLO
KPOA
KICC
KDDG
KPRV
KTBT
KBCT
KSAF
KMOC
KDRG
KBIO
KREC
KSTC
KVRP
KBTR
KMIG
KENV
KNSD
KCGC
KWAC
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KWMM
KPRP
KNEI
KPAI
KO
KVIR
KX
KMCA
KCRS
KMFO
KID
KCIP
KNAR
KR
KCRCM
KBTS
KSEO
KHDP
KFIN
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KSCI
KTLA
KHIV
KCSY
KTRD
KMRS
KNPP
KJUST
KCMR
KTER
KRCM
KCFC
KSAC
KCHG
KREL
KFTFN
KCOM
KLIG
KDEMAF
KAID
KGCC
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KRGY
KIFR
KWMNCS
KPAK
KOMS
KHSA
MPOS
MOPS
MARR
MTCR
MNUC
MASS
MX
MCAP
MAR
MTRE
MASC
MK
MG
MTCRE
MI
MD
MA
MO
MY
MU
ML
MRCRE
MAS
MEDIA
MC
MR
MIL
MW
MARAD
MAPP
MZ
MP
MOPPS
MTS
MLS
MILI
MEPN
MEPI
MEETINGS
MERCOSUR
MT
MCC
MIK
MAPS
MV
MILITARY
MDC
MEPP
MASSMNUC
MUCN
MQADHAFI
NATO
NG
NL
NZ
NT
NW
NO
NU
NS
NPT
NASA
NI
NK
NSG
NE
NORAD
NAFTA
NP
NATIONAL
NSSP
NSF
NA
NGO
NV
NR
NDP
NIPP
NZUS
NH
NC
NEW
NRR
NAR
NATOPREL
NPG
NSC
NPA
NSFO
OPDC
OPRC
OEXC
OTRA
ODIP
OIIP
OVIP
OPIC
OPCW
OAS
OREP
OSCE
OSCI
OES
OFDP
OECD
OCS
OIC
OPAD
OVP
OHUM
OFFICIALS
OIE
OTR
OMIG
OSAC
OBSP
OFDA
ON
OCII
PREL
PGOV
PARM
PINR
PTER
PHUM
PK
PREF
PM
PHSA
PA
PINS
PE
PBTS
PCI
PO
PL
POGOV
PAK
PEL
PGIV
PROP
PP
PBIO
POL
POLITICS
POLICY
PINL
PBT
PMIL
POV
PTBS
PG
POSTS
PALESTINIAN
PROV
PNAT
PINF
PRL
PAS
PDOV
PRAM
PREO
PAHO
PHUMPGOV
PAO
PREFA
PSI
POLITICAL
PAIGH
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PGOC
PY
PLN
PHUH
PF
PHUS
PU
PARTIES
PCUL
PGGV
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PHUMPREL
RS
RU
RW
REACTION
RCMP
RSO
RO
RP
ROOD
RM
ROBERT
RICE
REGION
RSP
RF
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
RFE
REPORT
SY
SP
SOCI
SMIG
SNAR
SCUL
SC
SU
SO
SI
SENV
SZ
SW
SA
SR
SF
SEVN
SN
STEINBERG
SEN
SG
SYR
SWE
SK
SH
SNARCS
SAARC
SNARIZ
SPCE
SARS
SNARN
SCRS
SYRIA
SL
SENVKGHG
SAN
ST
SIPDIS
SSA
SPCVIS
SOFA
SANC
SHI
SHUM
SIPRS
TSPA
TSPL
TU
TBIO
TRGY
TPHY
TS
TP
TW
TBID
TI
TF
TZ
TD
TT
TN
TNGD
TC
TX
TH
TL
TIP
THPY
TV
TK
TERRORISM
TO
TRSY
TURKEY
TINT
TFIN
TAGS
TR
US
UNSC
UNGA
UK
UP
UNCHC
UN
UNMIK
UNCSD
UY
USTR
USOAS
UNHRC
UNFCYP
UG
UNAUS
UNESCO
UNIDROIT
UNO
UV
UNHCR
USUN
UZ
USNC
UNCHR
UNCND
UNEP
USEU
USPS
USAID
UE
UNVIE
UAE
UNDP
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
UNPUOS
UNDC
UNICEF
Browse by classification
Community resources
courage is contagious
Viewing cable 10TRIPOLI10, LIBYA: 2009 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT (INCSR) MONEY LAUNDERING AND FINANCIAL CRIMES REF: STATE 114960 TRIPOLI 00000010 001.2 OF 003
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #10TRIPOLI10.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
10TRIPOLI10 | 2010-01-10 11:21 | 2011-01-31 21:30 | UNCLASSIFIED | Embassy Tripoli |
VZCZCXRO4238
PP RUEHBC RUEHDH RUEHKUK RUEHROV
DE RUEHTRO #0010/01 0101121
ZNR UUUUU ZZH
P 101121Z JAN 10
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC PRIORITY 5653
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHTRO/AMEMBASSY TRIPOLI 6204
UNCLAS SECTION 01 OF 03 TRIPOLI 000010
SIPDIS DEPARTMENT FOR NEA/MAG, INL, SCT, AND EEB; DEPT. OF JUSTICE FOR AFMLS, OIA, AND OPDAT; DEPT OF TREASURY FOR FINCEN
E.O. 12958: N/A
TAGS: KCRM EFIN PTER SNAR LY
SUBJECT: LIBYA: 2009 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT (INCSR) MONEY LAUNDERING AND FINANCIAL CRIMES REF: STATE 114960 TRIPOLI 00000010 001.2 OF 003
1.Libya is not considered to be an important financial sector in the Middle East and northern Africa. The Libyan economy depends primarily upon revenues from the oil and gas sector, which constitute practically all export earnings and over 70 percent of GDP. The combination of oil revenues and a small population give Libya one of the highest per capita GDPs in Africa. Libya has a cash-based economy and large underground markets. Libya is a destination and transit point for smuggled goods, particularly alcohol and black market/counterfeit goods from sub-Saharan Africa, Egypt and China. Contraband smuggling 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 a transit and destination country for men and women from sub-Saharan Africa and Asia trafficked for the purposes of forced labor and commercial sexual exploitation. While most foreigners in Libya are economic migrants, some are forced into prostitution, or forced to work as laborers and beggars to pay off their smuggling debts. Hawala and informal value transfer networks are present.
2.The Libyan banking system consists of a Central Bank, three state-owned commercial banks, two recently-privatized banks, forty-eight national banks and a handful of privately-owned Libyan banks. Libyan banks suffer from a lack of modern equipment and trained personnel, and substantial investment in both will be required to bring Libyan banks up to international standards. Libyan banks offer little in the way of services for their customers, and most Libyans make little use of the banking system. Libyan Banking Law No. 1 of 2005 allows for the entry of foreign banks into Libya. Libya is not considered to be an offshore financial center. Offshore banks, international business companies and other forms of exempt/shell companies are not licensed by the Libyan government.
3.Libya's privatization of its public banks is proceeding as part of the Central Bank's efforts to modernize Libya's banking sector. In 2007, Sahara Bank was privatized and entered into an agreement with the French bank BNP Paribas in which BNP owns nineteen percent and has majority representation on the Board of Directors. The privatized Sahara Bank is embarking on a comprehensive modernization process, including the development of a consolidated information technology system and customer service training. Similarly, another formerly state-owned bank, Wahda Bank was privatized in 2007 in a deal that awarded a nineteen percent stake to Jordan's Arab Bank. Two other state-run banks, Umma Bank and Jamahiriya Bank, were merged in 2008 as part of the government's plans to privatize and consolidate its state-owned banks. The Central Bank continues to formulate a program of banking sector modernization and retains western consulting firms to assist in reforms. Libya is also cooperating with the IMF and World Bank by soliciting their advice and assistance for economic reforms. In general, training and resources are lacking for anti-money laundering awareness and countermeasure implementation. A considerable transition time is anticipated while Libya's banking system is reformed and gradually reintegrated into the international system following the lifting of UN and U.S. sanctions.
4.The Central Bank is responsible for the establishment of regulations relevant to combating money laundering and terrorist finance under the terms of Article 57 of Banking Law No. 1 of 2005. Money laundering is illegal in Libya, and terms and penalties are clearly laid out in Banking Law No. 2 of 2005 on Combating Money Laundering. This law does not make specific mention of drug-related money laundering. These crimes are dealt with under Libya's Penal Code, Criminal Procedures Law, and related supplementary laws. Penalties for money laundering under Law No. 2 include imprisonment (for an unspecified duration) and a fine equal to the amount of relevant illegal goods/property. An increased penalty is used if the malefactor participated in the predicate offense, whether as a perpetrator or accomplice. Penalties ranging from 1,000 to 10,000 Libyan dinars (approximately $770 to $7,700) are also imposed on persons withholding information on money laundering offenses, persons warning offenders of an ongoing investigation and persons in violation of foreign currency importation regulations. The offense of falsely accusing others of money laundering offenses is punishable by imprisonment of not less than a year.
5.Banking Law No. 2 directed the Central Bank to establish a Financial Information Unit (FIU). It also established a National Committee for Combating Money Laundering chaired by the Governor or Deputy Governor of the Central Bank. The National Committee includes representatives from the Secretariat of the General People's Committee for Finance and Planning, the Secretariat of the General People's Committee for Justice, the Secretariat of the General People's Committee for Public Security, the TRIPOLI 00000010 002.2 OF 003 Secretariat of the General People's Committee for Industry, Economy, and Trade, the Secretariat of the General People's Committee for Foreign Liaison and International Cooperation, the Customs Authority and the Tax Authority.
6.Libyan banks are required to record and report the identity of customers engaged in all transactions. Records of transactions are retained for a considerable (but indeterminate) period, although a lack of computerized records and systems, particularly among Libya's more than forty-eight regional banks and branches in remote areas of the country, preclude reliable record-keeping and data retrieval.
7.Libya's Banking Law No.1 forbids "possessing, owning, using, exploiting, disposing of in any manner, transferring, transporting, depositing, or concealing illegal property in order to disguise its unlawful source." The broad scope of the law, and its complimentary relationship to existing criminal law, extends the scope of money laundering controls and penalties to non-banking financial institutions. All entities, either financial or non-financial in nature, are required to report money laundering activity to Libyan authorities under penalty of law. The Central Bank is responsible for supervision of all banks, financial centers and money changing institutions. All banks are required to undergo an annual audit and establish an administrative unit called the "compliance unit" which is directly subordinate to the board of directors. The Central Bank's Banking Supervision Division is also responsible for examining banks to ensure that they are operating in compliance with law.
8.Libya established a Financial Information Unit (FIU) under the terms of Banking Law No.
2.The Central Bank is responsible for establishing and housing the Libyan FIU. According to the director of the FIU, the unit now has a staff of 15 and is an independent body that reports directly to the Central Bank Governor, who heads the National Committee for Combating Money Laundering. Libya has welcomed an offer by the U.S. Department of Treasury to provide technical assistance to the FIU and other government entities in 1) Combating money laundering, terrorist financing and other financial crimes; 2) Confronting organized crime and corruption; and 3) reorganizing law enforcement and financial entities to help them detect, investigate and prosecute complex international financial crimes.
9.The FIU is tasked to gather all reports on suspicious transactions from all financial and commercial establishments and individual persons. It is authorized by law to exchange information and reports on cases suspected of being linked to money laundering activities with its counterparts in other countries, in accordance with Libya's international commitments. All banks operating in Libya are required by law to establish a "Subsidiary Unit for Information on Combating Money Laundering" responsible for monitoring all activities and transactions suspected of being linked to money laundering activities. The FIU is responsible for reporting this information to the Governor of the Central Bank for appropriate action. However, given the limitations of the Libyan banking sector both in terms of human and technological resources and the lead time necessary to establish new internal mechanisms, these subsidiary units are either non-existent or nonfunctional in most cases. All entities cooperating with the FIU and/or law enforcement entities are granted confidentiality. Furthermore, anyone reporting acts of money laundering before they are discovered by Libyan authorities is exempted from punishment under the law (safe harbor). As in previous years, there is no reliable information on the number of suspicious transaction reports (STRs) issued in 2007, nor information on the scope of prosecutions and convictions on the part of Libyan government authorities.
10.It is illegal to transfer funds outside of Libya without the approval of the Central Bank. Cash courier operations are in clear 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). Libya is seeking foreign assistance to bring tighter control over these transactions; however, fund transfers by migrant workers (mainly from sub-Saharan Africa and Asia) are difficult for the Libyan government to monitor, particularly transfers by criminal organizations. Between 1.5 and 2 million foreigners are thought to live and work in Libya in violation of immigration laws. It is illegal for these workers to take cash out of the country; however, porous borders and limited law enforcement capacity enable some degree of smuggling and illicit transfer of goods and currency.
11.Informal hawala money dealers (muhawaleen) exist in Libya, and are often used to facilitate trade and small project finance. Libyan officials have indicated that they intend to require registration of all muhawaleen in the near future. Given the poor quality and limited reach of Libya's banking system, many Libyans and foreigners rely on informal mechanisms for cash TRIPOLI 00000010 003.2 OF 003 payments and transactions. This is done largely for practical reasons, as Libya's socialist practices and commercial rivalries among regime insiders discourage disclosure of income and business transactions. Until the recent revision of the tax code, rates of up to 80-90 percent encouraged off-the-book transactions.
12.Reportedly, there is no evidence of extensive money laundering or terrorist financing taking place in the Free Trade Zone (FTZ) in the city of Misrata. Misrata, 210 kilometers east of Tripoli, is currently Libya's sole operating FTZ. Projects in the free zone enjoy standard "Five Freedoms" privileges, including tax and customs exemptions. At present, the zone occupies 430 hectares, including a portion of the Port of Misrata.
13.Libya is a party to the 1988 UN Drug Convention, the UN Convention against Transnational Organized Crime and the UN Convention against Corruption. Libya is a party to all 12 of the UN Conventions and Protocols dealing with terrorism, including the International Convention for the Suppression of the Financing of Terrorism. However, Libya has not criminalized terrorist financing. The GOL has demonstrated some willingness to circulate UN and U.S. lists of terrorist entities; however, there are no indications to suggest that the GOL has made any effort to freeze, seize or forfeit assets of suspected terrorists or financiers of terrorism.
14.In 2006, the Department of State rescinded Libya's designation as a State Sponsor of Terrorism. The Government of Libya (GOL) should enact counterterrorist financing legislation and adopt anti-money laundering and counterterrorist finance policies and programs that adhere to world standards. Libya has joined the Middle East and North Africa Financial Action Task Force and regularly participates in the Task Force's conferences. Libya should continue to modernize its banking sector and adopt full transparency procedures. Tax reform should continue so as to shrink the underground economy. Working with the international community, the Libyan FIU and financial police should avail themselves of training. Appropriate entities should become familiar with money laundering and terrorist finance methodologies. In particular, Libyan law enforcement and customs authorities should examine the underground economy, including smuggling networks, and informal value transfer systems. The GOL should continue measures aimed at combating corruption in government and commerce. The Government should endeavor to provide statistics on the number of money laundering investigations, prosecutions, and convictions.
15.The Point of Contact for this report is Allison Lee (xxxxxxxxxxxx). CRETZ