Regulatory Alerts2016-05-23
Added · Updated
Circular dated April 19, 2016 regarding banks undertaking activities to market banking products in certain gathering places
The Central Bank of Egypt mandates that banks obtain prior approval before marketing banking products through staff at specific temporary locations such as tourist villages, clubs, and shopping centers, restricting these activities to promotion and inquiries without conducting banking operations or accepting applications. Banks are also permitted to sponsor events using static advertising materials like billboards and screens without staff presence, provided they notify the Central Bank in advance. This directive reinforces previous instructions from September 2008 to ensure compliance and avoid penalties for unauthorized marketing activities.
Cairo, April 19, 2016
Dear Chairman of the Board of Directors, Bank.....
Greetings,
I would like to refer to the letter from the Deputy Governor dated September 11, 2008, regarding the necessity for banks wishing to conduct marketing activities for banking products through their employees in certain gathering places such as tourist villages, clubs, shopping centers, etc., to obtain prior approvals from the Central Bank of Egypt, to avoid any penalties resulting from violating these instructions.
In light of the requests submitted by some banks, I wish to emphasize the following:
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The advertising and marketing of the bank's products shall be conducted through participation in specific events such as exhibitions or conferences, or at resorts during the summer season, or at sports clubs, etc., provided that these activities take place in designated locations and for a temporary period (not exceeding one week), and under the condition that no banking operations are conducted or no requests are collected (such as opening accounts or filling out loan application forms), and that the presence is limited to marketing the bank's products and answering inquiries only, after obtaining the necessary prior approval from the Central Bank of Egypt.
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Banks are allowed to be present in certain places as official sponsors of specific events through billboards, posters, and television screens for the purpose of marketing the bank's products without the presence of any bank representatives, provided that the banks notify the Central Bank in advance.
Please be informed and instructed to take the necessary measures to comply with the above.
Please accept, Sir, my highest respect,
Tarek Fayed