Libya’s Finance Minister, Khaled Al-Mabrouk, highlighted the importance of enhancing reform efforts to counter money laundering, and terrorism financing schemes.
On Wednesday, the Minister held a meeting with the Director-General of the Customs Authority, the Deputy Director-General of the Tax Authority, and the Director of the Libyan Financial Information Unit at the Central Bank of Libya (CBL).
He stressed the need for governance over the procedures followed by the Tax and Customs authorities. This is to strengthen and reform the system of revenue collection.
The meeting discussed mechanisms for coordination and cooperation between the Ministry of Finance, the CBL, the Tax Authority, the Customs Authority, and all relevant entities. It also addressed the obstacles encountered by the Customs and Tax authorities in carrying out their assigned tasks, proposing appropriate remedies and effective solutions.
Money laundering poses a serious threat to the integrity of the global financial system, enabling criminals to conceal the origins of illicit funds. Terrorism financing, on the other hand, provides resources for extremist groups to carry out their destructive activities. By addressing these issues, Libya aims to protect its economy, promote transparency, and contribute to international efforts in combating financial crimes.
In July, investigations into digital currency encryption cases in Libya revealed money laundering operations conducted outside official channels, sources at the Libyan Public Prosecution told Al-Araby Al-Jadeed newspaper.
The sources, who requested anonymity, stated that “mining operations were carried out through unlawful means, and the proceeds were invested both domestically and internationally.” Investigations are still ongoing into the incidents.
Security forces in western Libya have carried out campaigns against sites used for digital currency mining, which the CBL has banned since 2018.
Meanwhile, the General Administration of Security Operations, under the Ministry of Interior, arrested a number of Chinese nationals, and seized equipment used for mining digital currencies. This was during an inspection of a site used for metal smelting in Zliten.
The Attorney General’s office also announced the discovery of several sites used for digital currency mining in Tripoli and Misrata. As well as the arrest of ten Chinese expatriates at a site in Misrata.
The CBL has prohibited the use of digital currencies such as Bitcoin and Ethereum, warning citizens of the security and economic risks of trading in these currencies.
This comes as these transactions have become more popular in recent times, amid worsening economic and living conditions for citizens and the increasing security chaos in the country.
The Central Bank stated that “virtual currencies like Bitcoin and others are illegal in Libya, and there is no legal protection for those who deal with them,” It pointed out the risks in the possibility of their use in criminal activities such as money laundering and terrorism financing.
Cryptocurrencies are subject to restrictions by monetary authorities in most countries, due to their extreme volatility and speculation, and their use in illegal activities.