Libya accelerates anti-money laundering measures

Libyan financial authorities are calling for the swift passage of new legislation aimed at curbing money laundering and terrorism financing, warning that further delays could expose the country to economic isolation and reputational harm on the international stage.

The National Committee for Combating Money Laundering and Terrorism Financing, chaired by Central Bank Governor Naji Issa, said international watchdogs have flagged signs of suspicious financial activity potentially passing through Libyan institutions. In response, the committee is urging lawmakers and state institutions to move quickly in adopting a long-delayed draft law designed to align Libya’s regulatory framework with global standards.

In a statement released this week, the committee said that failure to act could lead to increased scrutiny from international partners, damaging Libya’s credibility and weakening access to global financial markets.

“The risks are real,” said one official familiar with the committee’s internal discussions. “Libya cannot afford to appear as a weak link in the global financial system.”

The warning comes just ahead of a planned evaluation by the Financial Action Task Force (FATF), the global body that monitors anti-money laundering (AML) and counter-terrorism financing (CTF) compliance. Countries that fall short of FATF requirements often face increased due diligence from international banks, restrictions on financial flows, and reputational setbacks that can deter investment.

Libya’s financial system remains fragile after years of conflict and institutional fragmentation. While recent efforts have been made to rebuild credibility, the country still lacks a unified legal framework capable of detecting and prosecuting complex financial crimes.

The draft legislation under consideration would create clearer enforcement mechanisms, expand oversight powers for regulators, and strengthen coordination among financial, judicial, and law enforcement bodies. It is seen as a critical step in preventing Libya from being “grey-listed” or otherwise penalised in global financial rankings.

At a recent meeting held at the Central Bank headquarters in Tripoli, Governor Issa convened representatives from key institutions to discuss the upcoming FATF evaluation and to outline next steps. The committee emphasised the need for cross-government coordination, stressing that reform cannot be left to the Central Bank alone.

In a country that remains heavily reliant on oil revenues and imports, uninterrupted access to the global financial system is essential.

The committee’s message was clear: without swift reform, Libya risks being cut off from the networks that keep its economy running.