The Tripoli-based Libyan Audit Bureau (LAB) has issued a ruling freezing the bank accounts of 160 companies and individuals accused of smuggling foreign currency, falsifying official documents and evading customs duties.

The move follows growing concerns at LAB, the ministry of economy and the central bank about the abuse of letters of credit (L/Cs) as civil war torn Libya struggles to maintain its foreign currency reserves (DC World News, 11 September 2015 and 18 September 2015).

L/C abuse

As well as having the accounts they hold frozen, the listed individuals and companies have been prohibited from opening new bank accounts without LAB's prior approval.

Eight customs clearance offices have also been mothballed pending investigations.

This move by the bureau is part of the authorities' efforts to counter corruption and the smuggling of Libya's foreign currency through the opening of false L/Cs and the transfer of money abroad without importing goods in return.

Business dynasty

Amongst the individuals listed are five members of one of Libya's largest business dynasties, the Husni Bey family.

Officials at Husni Bey told local media that the allegations of corruption against the family members are unfounded.

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