Central Bank of Libya discusses U.S. dollar cash distribution controls and anti corruption cooperation with U.S. Treasury

The Central Bank of Libya said Gov. Naji Mohammed Issa and a delegation met in Washington with U.S. Assistant Secretary of the Treasury Eric Meyer to review Libya’s financial and economic situation and the bank’s reform agenda. The discussion centered on the agreement to establish a framework for unifying public expenditure, the Central Bank’s economic reform initiatives, and ways to strengthen execution of external transactions with the U.S. Federal Reserve. The meeting also focused on measures to address corruption and the smuggling of foreign currency outside Libya, particularly through letters of credit and the parallel market, alongside the related risks of money laundering and terrorist financing. In that context, the parties reviewed the Central Bank’s plan and the required procedures and controls to begin regular distribution of U.S. dollar cash through commercial banks and exchange companies, with the aim of limiting unlawful use and with support from the U.S. Treasury. Meyer also stressed the importance of continued cooperation among the Central Bank of Libya, the U.S. Federal Reserve and the U.S. Treasury on anti-corruption, compliance and enforcement against breaches.