Circular dated March 20, 2020 regarding precautionary measures to confront the effects of the Corona virus

Cairo on: 20 March 2020

Dear Sir / Chairman of the Board of Directors of the Bank,

Greetings,

In line with the state's direction regarding the Corona virus, and with the Central Bank of Egypt's keenness to maximize the effective contribution of the banking sector in implementing the state's plan to deal with the potential repercussions of the virus, and based on the role of the banking sector in stimulating the use of electronic means and channels for payment, which would facilitate financial transactions for citizens and contribute to limiting the spread of the virus.

In this context, and following the Circular dated March 15, 2020, regarding the precautionary measures and procedures that banks must implement to ensure the safety and security of the banking sector and to ensure the continuity of banks in carrying out their various activities to meet customer needs; and in coordination with the Anti-Money Laundering and Combating the Financing of Terrorism Unit regarding customer due diligence procedures.

Please be so kind as to direct the implementation of the following:

1- Regarding mobile payment services:
All rules for mobile payment services issued by the Central Bank of Egypt in November 2016 apply; as well as all customer due diligence procedures for mobile payment services issued by the Anti-Money Laundering and Combating the Financing of Terrorism Unit in March 2019, insofar as no provision is mentioned herein:

(-1) Amend the maximum limits for mobile accounts mentioned in Clause 3-6 of the aforementioned rules to become as stated in Clause 1-4-1 of this Circular.

1-2 Banks are permitted to open mobile accounts for their existing customers using data previously registered with the bank for customer identification purposes as follows:

1-1-1 Verify the customer's identity during the registration process for the service using standard electronic verification methods used for any of its products, for example, but not limited to:
(Authentication using the secure code for payment cards or authentication data for internet banking services, etc.).

1-2-1 The bank must verify the customer's ownership of the mobile phone number used in the registration process through the dedicated platform for that purpose.

1-2-3 The bank must, based on its assessment of the risks associated with the service and system users, set maximum limits for the balance, value, and number of daily and monthly transactions conducted on the mobile account, not exceeding the maximum limits shown in Clause 1-4-2 of this Circular.

1-3 Banks may, as an exceptional measure, apply electronic customer identification procedures for new bank customers as follows:

1-3-1 Identify the customer by any electronic means deemed appropriate by the bank, including, but not limited to, obtaining their national ID number and mobile phone number electronically.

1-3-1 The bank must verify the customer's ownership of the mobile phone number used in the registration process through the dedicated platform for that purpose.

1-3-3 The bank must, based on its assessment of the risks associated with the service and system users, set maximum limits for the balance, value, and number of daily and monthly transactions conducted on the mobile account, not exceeding the maximum limits shown in Clause 1-4-3 of this Circular.

1-2-1 Customers are obligated to complete what is necessary to comply with the customer due diligence procedures for mobile payment services "issued in March 2019" within three months from the date of account opening. The bank must close the account if the aforementioned procedures are not completed within the specified period, while enabling the customer to recover any due balance after closing the account.

1-2-1 The instructions contained in Clause 1-2 of this Circular apply from its date until June 2020.

Item No.	Customer Type	Daily Limits	Monthly Limits	Maximum Account Balance
1-4-1	(a) Natural persons who underwent customer due diligence procedures for mobile payment services issued in March 2019:	30,000	Bank-determined	Bank-determined
1-4-2	(b) Legal entities	40,000	2,000,000	Bank-determined
1-4-3	Existing bank customers who were identified	30,000	Bank-determined	Bank-determined
1-4-3	New bank customers who were identified electronically according to Clause 1-3	30,000	30,000	30,000

1-4 The maximum limits - in Egyptian Pounds - for mobile payment services are as follows:

1-5 The maximum limit for electronic money units issued by each bank, as stated in Clause 3-1-5 of the rules for mobile payment services issued in November 2016, is amended to become 500 million Egyptian Pounds.

1-6 Allow bank customers to transfer between any bank account held at any bank and any mobile account held at any other bank.

1-7 Electronic wallets are issued free of charge for six months, and this extends to the creation of Virtual Cards (VCN) from the wallet.

2- Regarding bank cards:

2-1 Prepaid cards are issued to citizens free of charge for one year, provided that these cards are "Contactless" when the bank begins issuing this type of card.

2-2 The maximum limits - in Egyptian Pounds - for prepaid cards, as stated in Clause 3-3 of the rules governing prepaid card payment services issued in May 2019, are amended to become as follows:

Item No.	Customer Type	Daily Limits	Monthly Limits	Maximum Account Balance
1-2-2	(a) Natural persons who underwent customer due diligence procedures for prepaid card services issued in March 2019:	30,000	Bank-determined	Bank-determined
1-2-2	(b) Legal entities	20,000	2,000,000	Bank-determined

3- Regarding contactless payment tools and acceptance means, the maximum single transaction amount for "Tap & Go" operations without entering a PIN, as stated in Clause 4 of the "Standards for Issuance and Acceptance of Contactless Electronic Payments" issued in May 2019, is raised from 300 Egyptian Pounds to 600 Egyptian Pounds.

4- Regarding electronic collection, banks licensed for electronic acceptance services must do the following:

4-1 Provide the "Unified QR Code" payment service and "Request to Pay" service to all merchants dealing with Point of Sale (POS) terminals, and provide necessary usage instructions to them, while informing customers of the availability of this service among merchants.

4-2 Adhere to the simplified customer identification procedures for micro-enterprises and establishments according to Clause 5-3-2 of the customer due diligence procedures for mobile payment services issued in March 2019.

5- Regarding internet banking services:
All rules governing the provision of internet banking services issued by the Central Bank of Egypt in November 2014 apply, insofar as no provision is mentioned herein:

5-1 Banks are permitted to register their existing customers in this service after verifying their identity according to the electronic verification methods explained in Clause 1-2-1-1 of this Circular, effective from its date and for a period of six months.

5-2 Customers are obligated to complete what is necessary to comply with the bank's procedures for subscribing to this service within the same period mentioned in Clause 5-1 of this Circular. The bank must suspend the subscription if the aforementioned procedures are not completed within the specified period.

5-3 The bank must determine the banking services made available to customers registered in the service according to Clause 5-1 of this Circular, based on its assessment of the risks associated with those services, while following the specific controls defined in the aforementioned rules.

6- With reference to what was mentioned in the Circular dated March 15, 2020, in the clause regarding the cancellation of fees and commissions applied to POS fees, ATM withdrawals, and electronic wallets for six months, this is to be implemented according to the following controls:

6-1 Regarding electronic POS terminals and QR codes, the exemption mentioned applies to all fees and commissions borne by private sector merchants on transactions conducted using all bank cards or mobile wallets issued by banks operating in the Arab Republic of Egypt. The issuing bank of the payment instrument must refund the "Interchange Fee" to the acquiring bank throughout the fee cancellation period.

6-2 Regarding ATM transactions for bank cards, the issuing bank of the card bears all commissions and fees related to cash withdrawal operations throughout the fee cancellation period. This does not include credit card returns.

6-3 Regarding mobile payment services, the exemption mentioned applies to all commissions and fees related to deposit, transfer, and cash withdrawal operations from ATMs.

7- Banks must do the following:

7-1 Ensure the operational efficiency of various electronic channels continuously and raise the level of cybersecurity monitoring for systems, as well as monitor unusual activities suspected of leading to illegal operations.

7-2 Educate customers (natural and legal persons) about the new services and exemptions, and urge customers through various appropriate means to use electronic channels instead of cash to ensure their safety.

7-3 Submit the following reports to the Supervision and Inspection Sector of the Central Bank of Egypt for a period of six months from its date:

• A weekly report on the number and value of transactions executed on each electronic payment or acceptance channel.

• A weekly report on the number of new merchants for each electronic acceptance channel.

• A weekly report on the number of mobile accounts and prepaid cards opened according to Clauses 1-2 and 2-1 of this Circular, as well as the number, value, and type of transactions executed on those accounts.

• A daily report on the number and value of cash withdrawal transactions executed through ATMs.

In light of the above, it is necessary to emphasize the immediate compliance with the foregoing.

Please accept our highest regards,
Tarek Amer