LIBYA TRADE FINANCE SCHEME RISKS DEFRAUDING THE COUNTRY VIA UK BANKS

On 19 February, the Libya Herald commented on a Global Witness report saying that fraudulent Libyan Letters of Credit allow money to enter international financial system via London.  The NGO says Libya appears to be losing millions of dollars a year through fraudulent use of its Letters of Credit (LC) system, run by the Tripoli Central Bank of Libya.  The report says these deals are passing through correspondent banks in the City of London, with weaknesses in AML rules leaving the UK’s banking system wide open to financial crime.  It says that Letters of Credit channel Libya’s oil dollars to fund the imports on which the country relies. They provide the only official pipeline of foreign currency for Libyan businesses and public authorities to buy food, medicine, equipment and services from overseas. 

https://www.libyaherald.com/2021/02/19/fraudulent-libyan-letters-of-credit-money-entering-international-financial-system-via-london-report/

The Global Witness report is at –

https://www.globalwitness.org/en/campaigns/natural-resource-governance/discredited/

 

 

 

I would be grateful for any modest contribution for my time and ongoing costs of computer, relocation, and (still ongoing) removal costs, I have a page, where contributions start as low as $3, at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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