Chapter 10 Controls for Providing Services of Commercial Registry and Real Estate Notarization (Documentation) Inside Bank Branches

In light of enhancing cooperation between the banking sector and both the Internal Trade Development Authority under the Ministry of Supply and Internal Trade, and the Real Estate Notary under the Ministry of Justice, with the aim of providing Commercial Registry services and Documentation services to customers through bank branches, the Board of Directors of the Central Bank of Egypt, in its meeting held on June 20, 2021,

Approved the general framework through which Commercial Registry and Documentation services can be provided inside bank branches, 1 and the controls detailed below, as follows:

Banks operating in Egypt and registered with the Central Bank of Egypt are permitted to provide Commercial Registry and Documentation services to their customers only as a first stage for Documentation services, and to the general public for Commercial Registry services, by concluding agreements for providing these services with both the Ministry of Supply and Internal Trade and the Ministry of Justice.
Banks wishing to provide Commercial Registry and Documentation services inside their branches must apply to the Central Bank of Egypt (Banking Affairs Sector) to obtain its approval after fulfilling the controls and procedures outlined in the Annex before contracting with both the Ministry of Supply and Internal Trade and the Ministry of Justice, which include the following:

Compliance with the controls issued by the Ministry of Supply and Internal Trade regarding Commercial Registry.
Compliance with the controls issued by the Ministry of Justice regarding Notarization offices.
Complete separation between Commercial Registry and Notarization activities and the Bank's activities.
Requirements for solvency and transparency.

1 Circular letter dated July 6, 2021 regarding controls for providing Commercial Registry and Documentation services through banks.

First: Beneficiaries of Commercial Registry and Real Estate Notarization (Documentation) Services Inside Bank Branches

Commercial Registry services inside bank branches registered with the Central Bank of Egypt can be provided to the general public, while Notarization services are restricted to bank customers only as a first stage through branches wholly owned by the State.
Banks have the right to conclude agreements with both the Ministry of Supply and Internal Trade, represented by the Internal Trade Development Authority under the Ministry, to provide certain services offered by the Authority through the Commercial Registry inside bank branches, and with the Ministry of Justice regarding Documentation services.

Second: Controls and Procedures to be Followed to Provide Commercial Registry and Real Estate Notarization (Documentation) Services:

Emphasizing that the outlets for providing Commercial Registry and Documentation services inside bank branches are merely a channel for providing these services to customers through Commercial Registry and Real Estate Notary employees, and that the Bank is not responsible for these services, and that responsibility lies with both the Ministry of Supply and Internal Trade and the Ministry of Justice as service providers.
Designating an independent location within the bank branch to provide Commercial Registry and Documentation services through employees belonging to the Ministry of Supply and Internal Trade and the Ministry of Justice, and completely separate from the banking products and services inside the branch.
Clearly announcing that the services provided through the Commercial Registry outlet inside the branch are issued by the Ministry of Supply and Internal Trade, and the services provided through the Documentation outlet inside the branch are issued by the Ministry of Justice.
All documents related to Commercial Registry and Documentation services must be on the printed materials of the Ministry of Supply and Internal Trade and the Ministry of Justice exclusively, including marketing materials.
Obtaining a separate acknowledgment from the customer confirming that they are aware that the Commercial Registry outlet and the Documentation outlet in the bank branch belong to the Ministry of Supply and Internal Trade and the Ministry of Justice exclusively, and not the Bank.
The Ministry of Supply and Internal Trade and the Ministry of Justice bear all risks arising from the services provided by their Commercial Registry and Documentation outlets inside the bank branch, as the Bank is not a party to the services provided, by any contracts or agreements between any customer and the Commercial Registry outlet or the Documentation outlet inside the bank branch. Consequently, the Bank is not obligated.
Obtaining an acknowledgment from the Ministry of Supply and Internal Trade and the Ministry of Justice confirming their full responsibility for resolving disputes and handling any complaints that may arise from providing Commercial Registry and Documentation services inside bank branches.
Compliance with what is stated regarding the confidentiality of customer accounts and data in Articles 140 to 142 of the Central Bank and Banking System Law No. 194 of 2020.

Third: General Provisions for Contracting Between the Bank and Each of the Ministry of Supply and Internal Trade and the Ministry of Justice:

The general provisions stipulated in the contracting between the two parties (the Bank and either of the aforementioned Ministries) must be observed, provided that the contract signed between the Bank and the aforementioned Ministries includes at a minimum the following:

Commercial Registry and Documentation services are not intended to be provided through bank branches.
The Bank's share of fees and commissions for the provided services and the basis for calculating them.
The mechanism for handling complaints received from customers.
The necessity of notifying about the data and number of employees and their substitutes authorized to be present inside bank branch headquarters to provide the service and obtaining the Bank's approval for them.
Locations for advertising Commercial Registry and Documentation services provided through the Commercial Registry and Documentation outlets inside the bank, as well as the authorized and unauthorized locations for the presence of outlet employees inside bank branches.
Details of the dispute resolution mechanism between the two parties (the Bank and either of the aforementioned Ministries), taking into account the acknowledgment required to be obtained from both the Ministry of Supply and Internal Trade and the Ministry of Justice as stated in the Second section.
A special account will be opened at the bank to provide this service through which transactions such as collecting service fees via deposit or transfer will be made, so that no cash transactions occur between customers and employees of both the Commercial Registry and the Real Estate Notary.
Bank employees are prohibited from promoting banking products and services to customers of Commercial Registry and Documentation services.
Banks must announce on their dedicated websites and on the branch interfaces where Commercial Registry and Documentation services are available.

Fourth: Banks must submit a request to the Central Bank of Egypt (Banking Affairs Sector) to obtain its approval to provide Commercial Registry and Documentation services inside their branches before contracting with the Ministry of Supply and Internal Trade or the Ministry of Justice, after fulfilling all the controls and procedures mentioned and obtaining the approval of the Security Sector for these outlets, as well as the approval of the Information Technology Sector for the connection lines between these outlets and the ministries under them.

Fifth: The Central Bank of Egypt (Banking Affairs Sector) must be notified if the Bank stops providing Commercial Registry and Documentation services through its branches or makes any modifications to the contract concluded between it and the Ministry of Supply and Internal Trade or the Ministry of Justice.

Sixth: A request must be submitted to obtain prior approval from the Central Bank of Egypt before the Ministry of Supply and Internal Trade or any of its agencies conducts supervision and oversight on the outlets providing Commercial Registry services in bank branches, or before the Ministry of Justice or any of its agencies conducts supervision and oversight on the outlets providing Real Estate Notary services in bank branches.