Regulatory Alerts2016-04-11
Circular dated March 27, 2016 amending the rules for operating mobile payment orders
Here is the translated text: As part of Egypt's anti-money laundering and combating terrorism financing measures, the Central Bank of Egypt has issued a new regulation for telegraphic transfers coming into the country via mobile banking apps. The purpose of this regulation is to allow citizens to receive foreign currency transfers through their personal mobile phone banking applications in Egyptian pounds and according to the following guidelines: 1. These services are limited only to natural persons. 2. Customers must comply with KYC procedures established by the Financial Intelligence Unit against money laundering and terrorism financing under Law No. 201 of 2011. 3. The bank must also comply with the guidelines established by the FIU for identifying customers of banks abroad against money laundering and terrorism financing under Law No. 201 of 2011. 4. A special monitoring mechanism must be implemented to monitor incoming foreign currency transfers in a systematic manner, ensuring that no suspicious activities are involved with money laundering or terrorism financing or any criminal activity. 5. The bank must set the maximum limit for receiving foreign currency transfers according to the risk assessment and established guidelines for this purpose, not exceeding five times the value of the customer's balance in Egyptian pounds at a time. 6. Before proceeding with the transfer, the bank must verify that the names of those involved in the transfer are not listed on domestic or international sanctions lists related to terrorism financing, proliferation of weapons of mass destruction, and other relevant lists as determined by the bank. 7. The bank shall take appropriate measures to ensure that the transfer is made for the benefit of the customer and that the amount has been credited in Egyptian pounds to their personal mobile phone banking account. I hope this information was helpful. Please feel free to ask any further questions you may have.