Libya has been ranked among the world’s top 10 countries most vulnerable to financial crimes, according to a recent international classification by Secretaria for Legal Consultancy and Risk Management. The findings paint a dire picture of a nation grappling with widespread corruption, money laundering, and economic criminal networks—symptoms of deep-rooted political and institutional fragility.
Escalating Financial Crimes Amid Political Turmoil
Years of political fragmentation and armed conflict have devastated Libya’s economic, political, and social fabric. With no viable political agreement between rival factions, the country has become fertile ground for criminal networks to flourish unchecked.
The report highlighted Libya’s high exposure to financial crimes, driven by weak regulatory systems and the absence of robust legal deterrents. These shortcomings have transformed Libya into a key transit hub for illicit funds, smuggling operations, and the financing of armed groups.
Oil Revenues Used as Political Leverage
According to the report, the National Oil Corporation (NOC) has become increasingly politicised, with oil revenues allegedly used by the Tripoli-based Government of National Unity (GNU), led by Abdel-Hamid Dbaiba, to buy political loyalty and consolidate power.
Instead of being directed toward reconstruction or improving citizens’ livelihoods, oil earnings are reportedly channelled into funding militias and granting economic privileges to aligned armed and security leaders. The NOC, once a pillar of national stability, is now seen as vulnerable to intense political interference, with decisions subject to influence from rival power centres.
Digital Fraud on the Rise
The report also warned of a sharp rise in cyber financial crimes, projecting a 60% increase by the end of 2025. This surge is partly driven by the exploitation of artificial intelligence in financial fraud and cyberattacks, further overwhelming the country’s already fragile oversight mechanisms.
Rampant Corruption in Vital Sectors
Corruption reportedly extends across key sectors including infrastructure, energy, education, and banking. Alarmingly, nearly 40% of public projects remain unimplemented despite substantial budgets allocated to them, while millions of Libyans endure deteriorating living conditions.
Calls for International Oversight and Institutional Reform
In light of these findings, the report calls for urgent reforms to prevent a full-scale financial and political collapse. These include unifying Libya’s fragmented financial and regulatory institutions, reinforcing judicial independence, and imposing international oversight on public spending.
The United Nations Security Council recently discussed Libya’s crisis in a session attended by Libya’s Permanent Representative Taher El-Sonni, UN envoy Hanna Serwaa Tetteh, and Russian Ambassador Vasily Nebenzya.
Without decisive action, Libya risks descending further into the abyss of institutional decay, leaving its population increasingly vulnerable to poverty, instability, and criminal exploitation.
