Regulatory Alerts2018-06-25
Added · Updated
Circular dated June 24, 2018 regarding opening accounts for private labor associations
The circular mandates that banks must not collect donations through accounts opened for private labor associations until the required license from the Ministry of Social Solidarity has been obtained. It reinforces previous instructions requiring banks to verify that these associations hold valid money collection licenses before proceeding with account operations.
Cairo: June 24, 2018
Dear Mr./ Chairman of the Board of Directors, Tahya Misr Bank
Further to my letter dated May 22, 2018, concerning the necessity for banks to verify in advance that associations (for which customers are permitted to donate) have obtained a license to collect funds from the Ministry of Social Solidarity, in accordance with the provisions of the Law Regulating the Work of Associations and Other Institutions Working in the Field of Civil Society Work, issued by Law No. 70 of 2017.
And since it is a condition for granting licenses to collect funds through banks that the application submitted to the administrative authority specifies the account to be used for collection.
I wish to emphasize allowing the opening of accounts for these associations, provided that no donations are collected through these accounts except after obtaining the necessary license from the Ministry.
Please kindly ensure that the necessary measures are taken in this regard.
Accept my highest regards.
Gamal Naguib