Region

Jurisdiction

Regulator

2019-01-01

Law No. 18 of 2019 Regulating the Use of Non-Cash Payment Means

The Egyptian Parliament enacted Law No. 18 of 2019 to mandate and regulate the use of non-cash payment means across government entities, public institutions, and private enterprises. The legislation requires all specified public and private sectors to settle financial dues, taxes, fees, and service charges using electronic or bank-based payment methods once transactions exceed thresholds defined in executive regulations. Violations incur fines ranging from 2% to 10% of the transaction value or fixed amounts, with proceeds dedicated to funding non-cash payment infrastructure and public awareness campaigns.

Egypt

Financial Regulatory Authority Egypt

Official Gazette - No. 15 bis (B) dated April 16, 2019

Law No. 18 of 2019 Issuing the Law Regulating the Use of Non-Cash Payment Means

In the Name of the People, The President of the Republic, The House of Representatives has decided the following law, which we hereby issue:

(Article 1)

The provisions of the accompanying law regarding the regulation of the use of non-cash payment means shall be applied, and any provision conflicting with its provisions is repealed.

(Article 2)

The Prime Minister shall issue the executive regulations for the accompanying law upon the proposal of the Minister of Finance and with the approval of both the Central Bank Governor and the Council of Ministers, within six months from the date of its implementation. Until these regulations are issued, the regulations and decisions in force on the date of implementation of the accompanying law shall continue to apply insofar as they do not conflict with its provisions.

(Article 3)

All entities subject to the provisions of the accompanying law shall regularize their status in accordance with its provisions within six months from the date of implementation of the executive regulations. The Prime Minister may, upon the proposal of the Minister of Finance and with the approval of both the Central Bank Governor and the Council of Ministers, extend the aforementioned period for another term or exempt certain geographical areas from the application of this law, in whole or in part, for a fixed period justified by national security regulations, force majeure, or other emergency circumstances.

(Article 4)

This law shall be published in the Official Gazette and shall take effect from the day following its publication. This law shall be sealed with the State seal and executed as one of its laws. Issued at the Presidency on 1 Sha'ban 1440 AH (corresponding to April 16, 2019 AD) Abdel Fattah El-Sisi

Official Gazette - No. 15 bis (B) dated April 16, 2019

Law Regulating the Use of Non-Cash Payment Means

Article (1)

For the purposes of this Law, the following terms shall have the meanings indicated alongside each:

Non-Cash Payment Means: Any payment method that results in a credit to a bank account of the beneficiary, such as deposit and transfer orders, credit and debit cards, mobile phone payments, or any other means approved by the Governor of the Central Bank of Egypt.
Bank Account: A contract concluded between a natural or legal person with one of the banks registered with the Central Bank or any authorized entity directly operating the deposit or credit system in the Arab Republic of Egypt, on the basis of an account used to exchange all transactions for settling and receiving mutual payments in cash or through electronic monetary units, such as current accounts, savings accounts, fixed deposit accounts, mobile phone payment accounts, and accounts linked to credit cards and prepaid cards.
Cash Financing: Funding provided by banks, real estate financing or leasing companies, privatization companies, microfinance companies and associations, or any other entity authorized to operate in these fields.

Article (2)

All state authorities and agencies, public legal entities, and companies wholly or majority-owned by the State are obligated to settle financial dues allocated to their members, employees, experts, board of directors and committee chairs and members, and social insurance companies, using non-cash payment means, except for foreign travel allowances.

Private legal entities and establishments of all kinds are also obligated to settle dues for their employees, experts, board of directors and committee chairs and members, and social insurance companies using non-cash payment means, once the number of their employees or the total value of their monthly salaries exceeds the thresholds specified in the executive regulations of this Law.

Article (3)

State authorities and agencies, legal entities, and establishments referred to in Article (2) of this Law are obligated to settle payments using non-cash payment means in the following circumstances, until the specified value exceeds the threshold determined by the executive regulations of this Law:

(a) Settling dues of suppliers, contractors, service providers, and other contractors.
(b) Granting cash financing.
(c) Distributing profits resulting from participation in company capital or investment funds.
(d) Paying dues of union members, dues of subscribers to private insurance funds, and insurance compensation.
(e) Disbursing grants and pensions through associations and institutions working in the field of civil society work, or other legal entities or establishments referred to in Article (2) of this Law.
(f) Settling consideration in cases of sale, lease, exploitation, or usufruct of land, real estate, or rapid transport vehicles by state authorities and agencies, and legal entities and establishments referred to in Article (2) of this Law.

The Prime Minister may, by decision, upon the proposal of the Minister of Finance and with the approval of the Central Bank Governor, add other payments required to be settled using non-cash payment means.

Official Gazette - No. 15 bis (B) dated April 16, 2019

Article (4)

State authorities and agencies, legal entities, and establishments that provide public services to the public or manage public utilities are obligated to provide exchange means for non-cash payment to their clients at all service fee collection points without additional cost, as specified in the executive regulations of this Law. This does not preclude charging an additional fee for providing the aforementioned services via electronic means if the service delivery is accompanied by delivery to the recipient's location.

Article (5)

The following payments shall be collected using non-cash payment means when their value exceeds the thresholds specified in the executive regulations of this Law:

(a) Taxes, customs duties, fees, and fines.
(b) Fees for services and buildings due to the entities specified in Article (4) of this Law.
(c) Installments of cash financing, insurance mortgage installments, pension contributions, and private insurance contributions.
(d) Receiving grants and pensions through associations and institutions working in the field of civil society work or other legal entities or establishments referred to in Article (2) of this Law.
(e) Collecting consideration in cases of sale, lease, exploitation, or usufruct of land, real estate, or rapid transport vehicles by state authorities and agencies, and legal entities and establishments referred to in Article (2) of this Law.

The Prime Minister may, by decision, upon the proposal of the Minister of Finance and with the approval of the Central Bank Governor, add other payments required to be collected using non-cash payment means.

Official Gazette - No. 15 bis (B) dated April 16, 2019

Article (6)

State authorities and agencies, and public legal entities that deal with the public may, upon approval of the Minister of Finance, grant positive incentives for settlement using non-cash payment means, including determining a discount on the value of amounts paid to them via this means or refunding a portion thereof. The executive regulations of this Law shall specify the method and controls for granting such incentives.

Article (7)

Anyone who violates the provisions of Articles (2, 3, 5) of this Law shall be punished with a fine not less than 2% (two percent) of the value of the cash amount paid, and not exceeding 1% (ten percent) of this amount, capped at one million Egyptian pounds. The same penalty shall apply to anyone who fragments payments with the intent to deceive and avoid the thresholds established by this Law. Anyone who violates the first paragraph of Article (4) of this Law shall be punished with a fine not less than 100,000 Egyptian pounds and not exceeding 300,000 Egyptian pounds. The fines stipulated in this Article shall be doubled in case of recidivism.

Article (8)

Without prejudice to the criminal liability of natural persons, the person responsible for the actual management of a legal entity shall be subject to the penalties prescribed for acts committed in violation of this Law if their involvement is proven and their failure to fulfill the duties imposed by that management contributed to the commission of the offense. The legal entity shall be jointly and severally liable with the convicted party for the financial penalties and compensation awarded in such cases.

Official Gazette - No. 15 bis (B) dated April 16, 2019

Article (9)

The proceeds from the fines stipulated in Article (7) of this Law shall be transferred to a dedicated account within the unified treasury account of the Ministry of Finance, with deductions to support efforts to provide infrastructure for non-cash payment means in government entities and to raise public awareness of these means. This account shall be managed and disbursed in accordance with the rules specified in the executive regulations of this Law, with any surplus from this account carried forward from one fiscal year to the next.