OFAC Issues Libya General License No. 11 Unblocking Gov't Assets, Etc.
On December 16, 2011, the Office of Foreign Assets Control issued General License (GL) No. 11 which unblocks all property and interests in property of the Government of Libya, its agencies, instrumentalities, and controlled entities, and the Central Bank of Libya (including Libyan Arab Foreign Bank). However, all funds, including cash, securities, bank accounts, and investment accounts, and precious metals of the Libyan Investment Authority (“LIA”) and entities owned or controlled by the LIA (including the Libyan Africa Investment Portfolio) that were blocked as of September 19, 2011, remain blocked.
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General License No. 11 Unblocks More than $30 Billion in Assets
GL 11 is the latest of several general licenses that authorize dealings with the Government of Libya. GL 11 is a clear statement to financial institutions that as a matter of U.S. law, assets of the Government of Libya, the Central Bank of Libya, and Libyan Arab Foreign Bank (LAFB) are no longer blocked and can be made available for access by the Libyan authorities. This action will allow for the release of more than $30 billion in blocked central bank and LAFB assets.
The Libyan government now has the ability and responsibility to manage these funds.
Assistance to the Government of Libya will Continue
The U.S. government states it has responded quickly to Libyan requests for access to assets and has released more than $1.5 billion in recent months to cover a wide range of needs, including fuel costs, social services, and treatment of the war wounded, as well as to support institutions of civilian government and civilian public infrastructure and to facilitate the resumption of banking sector operations. The Treasury Department says that it stands ready to continue working closely with the Libyan authorities on this and other issues.
Treasury Department Fact Sheet (dated 12/16/11) is available here.
President's statement (dated 12/16/11) is available here.