Libya’s Anti Financial Crimes, Money Laundering and Terrorism Financing Agency said on Monday that it arrested a suspect carrying 409 debit cards allegedly used to smuggle foreign currency out of Libya and launder money through the United Arab Emirates and Turkey.
The suspect, identified only by the [transliterated] Arabic initials Kh.A.B., was referred to the public prosecutor after officers seized bank cards issued by several Libyan commercial banks, along with 41 blank magnetic cards prepared for electronic fraud, the agency said.
According to the agency, the cards were intended to be smuggled abroad and used to withdraw hard currency in cash in the United Arab Emirates.
The money would then be transferred to Turkey through parallel and hidden financial channels to conceal its origin and make it appear legitimate, the agency said. It described the conduct as foreign exchange smuggling and money laundering under Libyan law.
The agency said the arrest foiled a large-scale scheme that threatened Libya’s financial system and depleted the country’s foreign currency reserves. It called the operation a significant blow to transnational organized crime networks.
The case is the latest to identify Turkey as a destination where illicit funds are allegedly transferred and integrated into the financial system.
Turkey was put on the grey list of the Financial Action Task Force (FATF), the international watchdog for combating money laundering and terrorist financing, in 2021 over deficiencies in its anti-money laundering controls.
The country was removed from the list in June 2024 after introducing regulatory reforms and increasing enforcement.