Regulatory Alerts2022-04-12 | CBE5.3Added · Updated
CBE Regulation Book 5.3 - Controls For The Issuance Of Bank Certificates Of Deposit To Establish Companies
The Central Bank of Egypt mandates that banks may only issue certificates of deposit for company establishment if the underlying funds originate from eligible sources such as bank loans, company capital, or specific government-approved deposits, and strictly prohibits using funds from prohibited sources like personal loans or unapproved deposits. Banks are required to verify the legitimacy of these funds, ensure that the total value of such certificates does not exceed 10% to 25% of the bank's capital depending on specific regulatory conditions, and maintain detailed records and reports for regulatory oversight. The regulation further requires banks to use standardized forms, report suspicious transactions, and adhere to specific capital adequacy and reporting deadlines set by various preceding and subsequent regulations.
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