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.

Corruption remains a significant 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 institutions, allowing practices like bribery and nepotism to flourish. While the Libyan Audit Bureau has made strides in improving transparency, the overall environment for combating corruption is hindered by a lack of financial disclosure laws and ongoing political challenges.

Libya's economy is heavily reliant on its rich natural resources, particularly its vast oil and gas reserves, which account for approximately 97 percent of government revenue. Despite the potential for investment due to reconstruction needs and unmet consumer demand, the investment climate is challenging, marked by bureaucratic inefficiencies, corruption, and security threats. The Government of National Unity has expressed interest in attracting foreign investment, but ongoing political instability and a history of non-compliance with contracts hinder progress.

Libya's investment climate presents significant challenges despite its potential for foreign direct investment (FDI) due to reconstruction needs and rich 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 country's historical non-compliance with contractual obligations and burdensome regulations further complicate the investment landscape.