The Central Bank of Libya (CBL) has announced fresh regulations for depositing foreign currency cash into bank accounts, a move the authorities say is aimed at improving transparency, strengthening financial oversight, and ensuring strict compliance with global anti–money laundering (AML) laws. The CBL also stated that the measures will help stop the financing of terrorism and other illegal financial activities in the country.
In the new guidelines, which have been sent to all banks in Libya, the central bank explained that both individuals and corporate entities can now deposit up to 10,000 US dollars — or the equivalent in other foreign currencies — without showing proof of where the money came from. However, if the amount to be deposited is more than the 10,000-dollar limit, the depositor will be required to provide a currency disclosure declaration. This document must be issued by Libyan border authorities before the funds can be accepted by any bank.
The CBL made it clear that only deposits that meet this condition will be processed. The declaration is meant to confirm that the funds have been legally brought into the country, helping to prevent the inflow of money from illegal sources. This requirement, according to banking experts, is part of a global best practice that allows central banks to track large cash movements across borders.
The circular issued by the CBL also explained what transactions are considered legitimate for foreign currency accounts. These include transfers coming from outside Libya, transfers between foreign currency accounts within local banks, cash withdrawals, and both local and international transfers made at the request of the account holder. By setting out these guidelines, the central bank hopes to give both banks and customers clear rules to follow.
Officials at the central bank said the changes are part of wider efforts to tighten financial controls and ensure that the Libyan banking system operates in line with international compliance standards. They stressed that the rules are not meant to stop normal business or personal transactions but to protect the country’s financial sector from misuse.
For everyday bank customers, the new policy is expected to make it easier to handle small and routine deposits without facing unnecessary delays or heavy paperwork. However, larger deposits will now face stricter checks. This, according to the CBL, will help ensure that funds linked to money laundering, smuggling, or terrorism financing are detected before they can enter the financial system.
The new regulation comes at a time when Libya is working to rebuild its financial institutions after years of instability. Analysts say the central bank’s move could boost confidence among international partners and foreign investors, especially if the rules are enforced effectively and consistently.
Financial experts also note that limiting proof requirements for small deposits while demanding full documentation for large transactions is a balance many countries adopt. It allows legitimate commerce and remittances to flow smoothly while closing loopholes that criminals might exploit.
The CBL has in recent years taken several steps to modernise its banking system, including improving electronic payments, standardising banking procedures, and strengthening its supervisory role over commercial banks. This latest measure is seen as part of that ongoing reform process, which aims to bring Libya’s financial sector closer to international norms.
Bank managers across the country have been advised to immediately start implementing the new rules and to sensitise customers about the changes to avoid confusion. Customers are being encouraged to keep proper records of their transactions, especially when dealing with foreign currency, to ensure smooth banking operations.
With these new deposit limits and disclosure requirements, Libya’s central bank hopes to improve trust in the banking system, protect the country’s economy, and position the sector for greater stability and growth in the years ahead.
