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.
If you would like a demo of our Subscription area, please reserve a day/time that suits you best using this link, or you may Contact Us for further information.
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. The UN has established various sanctions regimes since 1966, including arms embargoes and travel bans, with a focus on protecting the rights of those targeted. Currently, there are 15 ongoing sanctions regimes addressing issues like political conflict and counter-terrorism, administered by a sanctions committee.
In response to human rights violations, the UN Security Council imposed sanctions on Libya in 2011, including an arms embargo and asset freezes. The EU and US have also implemented similar sanctions, emphasizing the need for compliance and monitoring to support Libya's political transition and stability.
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 rampant practices like bribery and nepotism. Although the Libyan Audit Bureau has made strides towards improving transparency, the overall environment remains challenging for businesses.
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 significant potential for domestic and foreign investment, the country faces numerous challenges, including a complicated bureaucracy, widespread corruption, and security threats, which hinder foreign investment prospects. The Government of National Unity has expressed interest in attracting investment, but its effectiveness is limited by ongoing political instability and a history of non-compliance with contractual obligations.
Libya's investment climate presents significant challenges despite its potential for attracting foreign investment due to reconstruction needs and abundant natural resources. The Government of National Unity has expressed interest in increasing foreign investment, but obstacles such as bureaucratic inefficiencies, corruption, and security threats hinder progress. Additionally, the country's historical non-compliance with contractual obligations and the lack of a transparent regulatory framework further complicate the investment landscape.
Buy Full Libya Report
$125 one time payment
- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
