Regulatory Alerts2021-03-02
Added · Updated
Circular dated March 24, 2021 regarding the explanatory memorandum on due diligence procedures and the rules governing financial inclusion
The Central Bank of Egypt and the Anti-Money Laundering and Combating the Financing of Terrorism Unit issued an explanatory memorandum to clarify and facilitate the application of simplified due diligence procedures for financial inclusion products. The document instructs banks to remove unnecessary documentation barriers, such as excessive requests for proof of income or employment, and allows verification through alternative means like social media or field inquiries. It establishes specific transaction limits for micro-enterprises and self-employed individuals without formal registration, setting a maximum daily balance of 30,000 EGP, a monthly limit of 100,000 EGP, and a maximum annual balance to be determined by the bank. Banks must transition customers to full due diligence if their risk profile changes to medium or high, or if transaction limits are exceeded.