Regulatory Alerts2016-03-07
Added · Updated
Circular dated January 11, 2016 regarding the third amendment to the instructions for money market funds
The Central Bank of Egypt amends the instructions for money market funds by capping a bank's total investment in its money market and fixed income funds at 2.5% of total local deposits or 50 times the 2% capital adequacy limit, whichever is lower. Banks must ensure that subscribers to these operations are existing customers only and must complete Know Your Customer (KYC) procedures to verify their seriousness. Banks exceeding these limits are prohibited from issuing any new investment documents for current or new customers until compliance is achieved.