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
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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, which include a range of measures from economic sanctions to arms embargoes. Since 1966, the UN Security Council has established 31 sanctions regimes, with 15 ongoing as of October 2023, focusing on political settlements, nuclear non-proliferation, and counter-terrorism, while ensuring the rights of those targeted are considered.
The Arab League has also imposed sanctions, notably against Syria since 2011, and maintains a boycott of Israel, though enforcement varies among member states. In 2024, the League called for punitive measures against Israel regarding Gaza, while the UN and EU have implemented sanctions against Libya, including an arms embargo and travel bans, in response to human rights violations.
Bribery & Corruption
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 (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.
Economy
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.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
