Regulatory Guidelines & Compliance
The LYPay Instant Payment System operates within a well-defined regulatory framework established by the Central Bank of Libya (CBL) to ensure compliance, security, and efficiency in financial transactions. This section outlines the key regulatory guidelines and compliance requirements for banks and financial institutions participating in the instant payment ecosystem.
1. Scope & Applicability
These regulations apply to:
All banks and financial institutions offering LYPay services.
Payment service providers (PSPs) and fintech companies working with licensed institutions.
Merchants and businesses accepting instant payments via LYPay.
Users (individuals & corporate clients) utilizing the LYPay service.
2. Responsibilities of Key Participants
Banks & Financial Institutions
Ensure full technical and operational readiness for LYPay integration.
Implement anti-fraud monitoring, AML/CFT compliance, and customer protection measures.
Maintain secure and stable systems to handle real-time transactions.
Ensure settlement and reconciliation processes comply with CBL policies.
Service Providers (PSPs & Aggregators)
Adhere to CBL’s technical integration standards.
Maintain security, encryption, and fraud prevention measures.
Provide customer support and compliance reporting.
Merchants
Ensure smooth payment acceptance via QR codes and direct payment links.
Comply with AML regulations and report suspicious transactions.
Follow standardized settlement and chargeback procedures.
Users (Consumers & Businesses)
Use the LYPay service as per the defined terms & conditions.
Ensure account security and report any fraudulent activity.
Comply with local AML/CFT laws to prevent illegal activities.
3. AML & CFT Compliance
All institutions using LYPay must adhere to AML (Anti-Money Laundering) and CFT (Counter-Terrorism Financing) guidelines.
Mandatory KYC (Know Your Customer) verification for all users.
Continuous transaction monitoring to detect unusual patterns.
Real-time fraud detection mechanisms to identify and block suspicious transactions.
4. Security & Risk Management
Data encryption and secure authentication mechanisms (including multi-factor authentication).
Implementation of fraud detection & monitoring tools to track high-risk transactions.
Regular security audits and incident response protocols.
5. Financial Settlement & Fee Structure
All LYPay transactions follow a defined settlement process based on the CBL clearing & reconciliation framework.
Transaction fees are structured and distributed between:
Sending bank
Receiving bank
Service providers (Moamalat, PSPs, etc.)
Chargebacks & refunds are handled as per the CBL dispute resolution policy.
6. Reporting & Compliance Audits
Participating banks and financial institutions must submit:
Regular compliance reports to the Central Bank.
Fraud & dispute resolution reports for transaction anomalies.
AML/CFT transaction monitoring logs to financial regulators.
🔗 For full details on regulatory guidelines, download the official document:
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