The Administrative Control Authority (ACA), one of Libya’s main state monitoring agencies, said it discussed the file of five hundred companies that were included in its blacklist against the background of monitoring observations and suspicions related to the documentary credit procedures (LC fraud), and discussing the necessary regulatory and legislative measures in this regard to ensure the protection of public funds.
The discussions took place during an extensive meeting held by ACA Chairman Abdalla Gadirboh at the ACA’s Tripoli office. The meeting included the Chairman of the Finance Committee in the House of Representatives, Omar Tantoush, the Chairman of the Finance Committee of the Supreme Council of State, Maree Al-Barassi, and the Chairman of the Final Accounts Committee, Ali Mansour, in the presence of several members of the two Houses and directors of departments at the Authority.
The meeting dealt with strengthening joint coordination to discuss the most prominent financial and economic files, where the meeting reviewed the progress of the final accounts and followed up on the launch of its third phase starting from 2021 to accurately show the country's financial position.
The meeting also discussed the performance of the National Oil Corporation and production and revenue indicators.
LC fraud
It will be recalled that since the 2011 revolution and the onset of weak Libyan state institutions, Libya has experienced a huge increase in Letters of Credit (LC) fraud.
This is where Libyan companies open letters of credit at the lower exchange rate offered by the Central Bank of Libya ostensibly to import goods of a declared value, but in reality, either import lower valued goods or no goods at all and pocket the difference in hard currency.
They will then often repatriate the difference in hard currency to Libya and sell it on the black-market at a higher exchange rate. This increases inflation and cash outside the banking system.
85 companies suspended for US$ 130 million LC fraud
In February this year, for example, the Tripoli based Ministry of Economy and Trade requested that the Central Bank of Libya (CBL) suspend 85 import companies for failing to import any cooking oil with the US$ 130 million worth of letters of credit they were granted in 2025
11 companies referred for LC fraud
In another example, in January this year, the Customs Authority announced the detection of 11 companies that obtained Letters of Credit at the official (and lower) exchange rate without importing any goods.
Investigations showed that US$ 54 million was transferred to foreign beneficiaries without actual imports.
The Customs Authority said legal procedures have been completed, and the case has been referred to the Public Prosecutor’s Office. The Customs Authority reaffirmed its commitment to combating financial corruption and protecting public funds and the national economy.
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