Regulatory Alerts2019-07-21
Added · Updated
Circular dated July 17, 2019 regarding the rules governing the classification of financial inclusion products and services
The Central Bank of Egypt establishes simplified rules and due diligence procedures for financial inclusion products and services to support financial inclusion while managing money laundering and terrorist financing risks. Banks must obtain prior approval from the Central Bank and the Financial Regulatory Authority to offer these products, adhering to strict transaction limits: a maximum account balance of 20,000 EGP, a single transaction limit of 12,000 EGP, a daily aggregate limit of 12,000 EGP, and a monthly limit of 100,000 EGP for individuals and 200,000 EGP for micro-enterprises. The circular mandates simplified customer identification and verification processes for low-risk clients, including natural persons and micro-enterprises, and permits banks to utilize service providers such as mobile operators and post offices for identity verification under specific conditions.