Libya Country Summary
Sanctions
High Concern
FATF AML Deficient List
Medium Concern
Terrorism
Medium Concern
Corruption
High Concern
US State ML Assessment
Low Concern
Criminal Markets (GI Index)
High Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low Concern
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Anti Money Laundering
FATF Status
Libya is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
Libya has not yet undertaken a Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards.
Sanctions
Libya, as a UN member, must comply with sanctions aimed at maintaining international peace and security, which include various measures such as arms embargoes and travel bans. The UN Security Council has established 31 sanctions regimes since 1966, with 15 currently active, focusing on political settlements, nuclear non-proliferation, and counter-terrorism efforts.
The US and EU have implemented their own sanctions against Libya, reflecting the UN's measures while addressing human rights abuses and political stability. The Arab League has also enacted sanctions, particularly against Syria, and has called for actions against Israel, although enforcement varies among member states.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 13 |
| World Bank: Control of Corruption Percentile Rank | 4 |
Corruption remains a significant barrier to foreign direct investment in Libya, with officials often engaging in corrupt practices without facing consequences due to weak enforcement of existing laws. The country also grapples with severe issues related to human trafficking, arms trafficking, and various forms of financial crime, exacerbated by the influence of militias and a fragmented judicial system. Despite some progress in transparency efforts by the Libyan Audit Bureau, the overall governance and political leadership necessary to combat organized crime and corruption are lacking.
Economy
Libya's economy is heavily reliant on its rich natural resources, particularly oil and gas, which account for approximately 97 percent of government revenue. Despite the potential for investment due to reconstruction needs and unmet consumer demand, the investment environment remains challenging due to bureaucratic complications, corruption, and threats from armed groups. The Government of National Unity has expressed interest in attracting foreign investment, but historical issues with contractual compliance and regulatory transparency continue to hinder progress.
Libya's investment climate presents significant challenges despite its potential for foreign direct investment (FDI) due to reconstruction needs and abundant natural resources. The Government of National Unity (GNU) has expressed interest in attracting foreign investment, but obstacles such as bureaucratic inefficiencies, corruption, and security threats from armed groups hinder progress. Additionally, the legal framework established by the 2010 Investment Law offers some incentives for investment, yet the lack of compliance with contractual obligations and the requirement for local partnerships in strategic sectors complicate the investment landscape.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings