Libya Country Summary
Sanctions
UN, EU and US sanctions in place
FATF AML Deficient List
No but Mutual Evaluation not yet undertaken
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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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 adhere to sanctions aimed at maintaining international peace and security. The UN Security Council has established 31 sanctions regimes since 1966, which include measures like arms embargoes and travel bans, with ongoing regimes focusing on political conflict resolution and counter-terrorism as of October 2023.
In response to human rights violations, the UN imposed sanctions on Libya in February 2011, including an arms embargo and asset freezes. The EU and US have also implemented similar sanctions, reflecting the serious situation in Libya and aiming to support a peaceful political transition.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 18 |
| World Bank: Control of Corruption Percentile Rank | 4 |
Corruption is a major barrier to foreign direct investment (FDI) in Libya, affecting nearly all sectors, particularly government procurement and the oil industry. Despite some legal provisions against corruption, enforcement is weak due to political instability and ineffective public institutions, leading to widespread practices such as bribery and nepotism. While the Libyan Audit Bureau has made strides in improving transparency, the overall institutional framework remains compromised, hindering efforts to combat corruption.
Economy
Libya's economy is heavily reliant on its vast hydrocarbon resources, with oil and gas exports accounting for approximately 97 percent of government revenue. Despite having the largest proven oil reserves in Africa and significant investment potential due to reconstruction needs, the investment climate is hampered by bureaucratic inefficiencies, corruption, and security threats, which deter foreign investment.
Libya's investment climate presents significant challenges despite its potential for foreign direct investment (FDI), primarily due to a convoluted bureaucracy, regulatory burdens, and rampant corruption. The Government of National Unity (GNU) has expressed interest in attracting foreign investment, yet the lack of compliance with contractual obligations and threats from armed groups further complicate the environment. While the 2010 Investment Law offers some incentives for investment, the overall climate remains difficult for foreign investors.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
