Regulatory Alerts2016-03-07
Circular dated January 11, 2016 regarding the third amendment to the instructions for money market funds
The Governor of the Central Bank of Egypt, Hisham Okasha, addressed that in reference to amending the rules which apply to banks in relation to Money Market Funds. In a board meeting on January 6, 2016, he stated that certain guidelines were revised: - Increase the upper limit for investments in money market funds and fixed income securities issued by central banks or government-affiliated institutions from 5% of total assets to 7.5%, and reduce the upper limit for capital adequacy ratio from 12% to 9.5%. This change was implemented on December 18, 2012, following a decision by the Central Bank's board concerning the lower capital threshold. - Banks are now required to complete customer due diligence (CDD) procedures for all their employees in accordance with anti-money laundering and terrorist financing regulations. - Banks that violate the established limits must immediately issue new shares or securities until they comply with these restrictions."