Regulatory Alerts2021-01-06
Added · Updated
Circular dated January 6, 2021 regarding local transfers in the Egyptian pound
The Central Bank of Egypt mandates that banks execute local Egyptian pound transfers within specific timeframes: within two hours for same-bank transfers and within two hours for outgoing transfers to other banks, with beneficiary banks required to credit accounts within one hour. The circular abolishes fees charged by beneficiary banks for incoming transfers, requires the implementation of Straight-Through Processing (STP), and increases the Central Bank of Egypt Automated House Clearing system's daily settlement windows from two to four starting February 1, 2021. Banks are granted three months to comply with the settlement and STP requirements and six months for other provisions, while also being required to disclose fees, prioritize electronic payment costs over paper ones, and validate IBANs.