Freezing of Assets: Libya

(asked on 19th December 2019) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of reports that Libyan assets frozen in the UK have sustained a significant drop in value.


Answered by
Earl of Courtown Portrait
Earl of Courtown
Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)
This question was answered on 7th January 2020

At close of business on Friday 28 September 2018 the approximate total value of frozen Libyan assets in the UK reported to the Office of Financial Sanctions Implementation (OFSI) in the Treasury was £11.2 billion. The figures for 2019 are being finalised. OFSI undertakes an annual frozen asset review requiring all persons or institutions that hold or control frozen assets in the UK to report to OFSI, from which this figure is taken.

HM Government does not own or hold frozen assets as a result of UN and EU sanctions on Libya. It is the responsibility of individuals and entities (e.g. Financial Institutions) to ensure they comply with their asset freezing obligations under the relevant sanction’s regime.

In 2019, OFSI identified an inconsistent figure relating to Libyan frozen funds reported by a financial institution when conducting the 2018 review, and contacted the institution for an explanation of the figure. The financial institution stated that an incorrect figure had been submitted in the previous year as part of its submission. This artificially inflated the figure reported to HMT for the 2017 review and therefore the overall level of frozen assets recorded for 2017.

An incorrect submission to the Treasury does not represent a loss of frozen funds. There is currently no evidence to suggest that frozen funds have been depleted or moved.

OFSI is currently investigating the discrepancy, but I cannot comment on ongoing cases and the financial institution cannot be named for legal reasons.

Reticulating Splines