Regulatory Alerts2019-12-04
A circular dated December 3, 2019 regarding conducting a field inquiry about suppliers of credit clients
In a letter dated December 3, 2019, the Chairman of the Board of Directors of a bank in Cairo, Egypt, is informed of the importance of conducting thorough customer due diligence before granting credit facilities. The letter references guidelines issued by the Central Bank of Egypt, emphasizing that credit facilities should be based on a deep analysis of the customer's financial position, business results, reputation, and commitment to meeting obligations. To ensure responsible lending practices, the bank is instructed to obtain an approved list of the customer's suppliers, conduct on-the-ground inquiries for local suppliers, and acquire copies of suppliers' commercial registers before conducting any transactions in their favor.
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credit