Dear Mr. Chairman of the Board of Directors,

Greetings,

In light of the Central Bank's efforts to maintain the security and integrity of money transfer operations and related services such as counting, sorting, feeding, and maintaining ATMs, and to reduce associated risks, and with the aim of unifying the mechanisms followed by banks and applying the highest standards of efficiency and safety in their dealings with these companies, please find attached the Instructions regarding the rules regulating banks' dealings with money transport companies within the Arab Republic of Egypt. These instructions include the security and operational procedures and standards that banks must comply with when contracting with qualified companies providing money transfer services and related services such as counting, sorting, feeding, and maintaining ATMs. Please be so kind as to direct compliance with the aforementioned, noting that the period for aligning conditions to apply the instructions is six months from the date of this circular.

Please accept our highest respect,

Tarek El-Khouly

Rules Regulating Banks' Dealings with Money Transport Companies Within the Arab Republic of Egypt

1

Central Bank of Egypt

Table of Contents:

Scope of Application:
1 - Security and Safety Procedures.
1-1 Security Procedures:
1-2 Armoring of Vaults, Doors, and Counting/Sorting Areas for Premises:
1-3 Armoring Specifications for Vehicles:
1-4 Surveillance Cameras:
1-5 Fire Fighting Systems:
1-6 Armament, Armory, and Ammunition Room:
1-7 Information Security:
1-8 Preparation of Security Records and Books:
2 - Operational Procedures:
2-1 Vaults / Armored Rooms:
2-2 Counting and Sorting Machines:
2-3 Counting and Sorting Halls:
2-4 Cash Delivery and Receipt Locations at Banks:
2-5 Feeding ATMs and Mechanism for Handling Returned Items:
2-6 Insurance Documents:
2-7 Alternative Work Plan in Case of Emergency:
2-8 Training and Qualifications:

Introduction:

In the framework of the Central Bank of Egypt's plan to unify money transfer mechanisms and apply the highest standards of efficiency and safety for this process, it has been decided to issue the rules and conditions that banks must observe and follow when choosing money transport companies and related services such as counting, sorting, feeding, and maintaining ATMs.

Scope of Application:

These instructions apply to all banks operating in the Arab Republic of Egypt, requiring them to ensure that the money transport company follows the security and safety procedures and standards, as well as the operational procedures listed below - as a minimum. Banks are granted a period of up to six months to align their conditions, with the requirement to notify the Central Bank of Egypt of a specific timeline for completing implementation.

1 - Mandatory Security and Safety Procedures

a- Banks are committed to completing the security inquiry for money transport companies requesting to deal with them, through the Security Sector of the bank, in accordance with the relevant instructions issued by the Central Bank of Egypt.

b- Banks must conduct a security inspection of the money transport companies intended to be dealt with, to ensure that the company complies with all the security procedures and conditions for the security controls listed below, and to provide the Security Sector of the Central Bank of Egypt with a report on the results of the inspection. Banks must also include in their contracts with money transport companies a clause allowing them and the Central Bank of Egypt to access information and data of the contracted money transport company - regarding the conditions stipulated in these instructions - as well as field inspection if required.

c- The rules and controls for money transport vehicles are the same as those for ATM feeding vehicles.

d- Banks must ensure that the money transport company follows the security and safety procedures and standards listed below:

1-1 Security Procedures:

1-1-1 Obtaining the necessary approvals by meeting the fire hazard prevention conditions according to the conditions of the competent authorities (Civil Defense Administration at the Ministry of Interior).

2-1-1 Existence of an approved emergency and evacuation plan by the competent authorities at the Ministry of Interior.

3-1-1 Equipping the premises and branches of money transport companies with a monitoring room inside the company's premises, with solid walls and a solid door equipped with an access control system, containing camera monitoring systems, anti-theft alarm systems, fire fighting systems, and entry/exit systems.

4-1-1 Installing and operating a wired telephone alarm system (hotline and 135 code feature) with the Rescue Police inside the security monitoring room in all branches, along with installing a wireless early warning system at the company's headquarters.

5-1-1 Having a trained security officer inside the security monitoring room 24 hours a day to monitor cameras.

6-1-1 Obtaining a professional license (money transporter) issued by the Ministry of Interior for all crews working in money transport vehicles in the company (crew leader, guard, driver), ensuring these licenses are valid.

7-1-1 Companies must comply with all instructions issued by the Central Bank of Egypt regarding the security of money transfers, considering them a fundamental clause in the bank's contract with the companies.

8-1-1 Completing a comprehensive background criminal check for all employees.

2-1 Armoring of Vaults, Doors, and Counting/Sorting Areas for Premises:

1-2-1 Creating vault rooms inside the company's premises, far from the facade, with walls not shared with neighbors.

2-2-1 Armoring or reinforcing all sides of vault rooms (walls, ceiling, floor), and the door must be armored according to international standards for armoring vault rooms.

3-2-1 Securing vault rooms with anti-theft, vibration, and intrusion alarm devices, in addition to equipping them with fire alarm sensors and an automatic extinguishing system.

4-2-1 Availability of security services with armed guards at premises containing vaults 24 hours a day.

5-2-1 Securing the cash receipt and delivery area by installing shatter-resistant protective films in case of glass partitions.

6-2-1 Designating a secure premises within the company's area where money transport companies' vaults are located, such that it is not visible to passersby and allows security scanning of money transport vehicles during loading or unloading through security devices and equipment.

3-1 Armoring Specifications for Vehicles:

1-3-1 Technical fitness of money transport vehicles, with the necessity of adhering to the armoring grade of money transport vehicles, where the armoring grade must not be less than (6B).

2-3-1 Existence of partitions between the driver's cabin, the vehicle crew, and the vault.

3-3-1 Subscribing to the tracking and rescue service connected to the Ministry of Interior for money transport vehicles and ATM feeding vehicles, with the subscription card present in the vehicle at all times (ensuring the card is valid).

4-3-1 Providing suitable extinguishing means inside the vehicle according to the Egyptian Fire Code.

5-3-1 Equipping money transport vehicles with surveillance cameras (covering the front, sides, driver's cabin, vault, and main door) and transmitting the camera view to the operations room at the company's headquarters.

6-3-1 Keeping copies of the recordings of money transport vehicle cameras for a period of not less than 30 days.

7-3-1 Presence of all official documents inside the money transport vehicle (vehicle license, driver's license, weapon license, professional license for money transporters for all crew members, national ID cards, company ID, financial insurance policy for money transport).

4-1 Surveillance Cameras:

1-4-1 Installing surveillance cameras and keeping recordings for a period of not less than 90 days as a minimum, covering the following places: 1-1-4-1 In front of, around, and the perimeter of the company's premises from the outside.

2-1-4-1 The main door and entrance, emergency door, all corridors, stairs, inside rooms, in front of the vault door, and inside the vaults.

3-1-4-1 Cash delivery routes completely, starting from the arrival places of money transport vehicles to the places designated for storage, counting, sorting, and the cash receipt and delivery area.

4-1-4-1 The entire counting area, ensuring all counting machines are clearly covered by cameras.

5-1-4-1 In case the company's premises have a garage, covering entry and exit places and all corridors inside the garage.

2-4-1 Adhering to the following technical specifications for external surveillance cameras as a minimum: 1-2-4-1 Camera rating IP not less than 3 megapixels.

2-2-4-1 True Wide Dynamic Range Hardware Sensor.

3-2-4-1 Vision and recordings not less than 25 frames per second.

4-2-4-1 Image quality 1536x2048 pixels.

3-4-1 Adhering to the following technical specifications for internal surveillance cameras as a minimum: 1-3-4-1 Camera rating IP not less than 2 megapixels.

2-3-4-1 The lens must be Varifocal and equipped with IR feature.

3-3-4-1 True Wide Dynamic Range Hardware Sensor.

4-3-4-1 Vision and recordings not less than 25 frames per second.

5-3-4-1 Image quality 1080x1920 pixels.

4-4-1 Equipping money transport vehicles with surveillance cameras covering (front, sides, driver's cabin, vault, main door) and direct transmission of the camera view to the operations room at the company's headquarters, keeping camera recordings for vehicles for a period of not less than 30 days.

5-4-1 Commitment by the company to connect security systems and devices (surveillance cameras / camera recording device / alarm devices, etc.) to an alternative power source (UPS) to ensure all systems operate in case of power outage and without any unrecorded time periods.

5-1 Fire Fighting Systems:

Meeting fire hazard prevention conditions, with emphasis on the following: 1-5-1 Obtaining the necessary approvals by meeting fire hazard prevention conditions according to the conditions of the competent authorities (Civil Defense) and having an emergency and evacuation plan approved by the competent authorities at the Ministry of Interior.

2-5-1 Installing suitable extinguishing means inside vault rooms, electrical panels, security monitoring room, document storage rooms, garage if available, and important places within the company, providing the appropriate number of manual fire extinguishers.

6-1 Armament, Armory, and Ammunition Room:

1-6-1 Presence of trained and armed security personnel with live ammunition, adhering to the uniform during money transfer operations.

2-6-1 Activating the permanent controls and instructions for storing and securing the circulation of weapons and ammunition, and emphasizing that weapon licenses are renewed and valid.

7-1 Information Security:

1-7-1 Commitment to putting in place work procedures to maintain information security and ensuring full compliance by employees in implementing these procedures, ensuring the security and confidentiality of customer data.

2-7-1 Holding regular training courses to raise awareness of the importance of information security and activating the specific controls for it.

8-1 Preparation of Security Records and Books, including the following:

1-8-1 Systems record "maintenance / faults / fitness".

2-8-1 Alarm tests with the Rescue Police.

3-8-1 Evacuation plan.

2 - Operational Procedures:

a- Banks are committed to conducting a surprise inventory of cash in vaults at least once a month, accompanied by a separate committee, and matching it with records, keeping inventory minutes for a period of not less than one year.

b- The bank must conduct periodic on-site audits and inspections of the company's facilities and operations to verify the effectiveness of the controls in place, such as the presence of a security officer accompanying the employee responsible for feeding machines, documenting audit results, and following up on any identified deficiencies.

c- Banks must ensure that the money transport company follows the operational procedures listed below:

1-2 Vaults / Armored Rooms:

1-1-2 Activating the principle of dual control on all vaults and armored rooms within the company.

2-1-2 Ensuring the preparation of records to prove the circulation of custody of vaults (keys and codes).

3-1-2 Preparing records proving the movements of banknotes in and out, with balances reviewed daily with banks.

4-1-2 Keeping custody records for a period of not less than one year.

5-1-2 Separating the cash storage places for each bank.

6-1-2 Keeping copies of backup keys in a closed vault under dual control by a separate management, and ensuring the presence of records to prove the circulation of backup copies, testing backup copies at least once a year.

2-2 Counting and Sorting Machines:

1-2-2 Availability of modern machines with the highest level of modern technology for counting and sorting circulating banknotes and ballistic currencies.

2-2-2 Ability to count and sort all denominations of Egyptian and foreign currencies authorized by the Central Bank.

3-2-2 Availability of counting, sorting, and counterfeit detection features, with the availability of various counterfeit detectors.

4-2-2 Performing permanent maintenance and updating of counting machines periodically, documented in the company's books.

3-2 Counting and Sorting Halls:

1-3-2 Covering the entire counting and sorting area and counting machines clearly with cameras.

2-3-2 Securing counting and sorting halls and ensuring that unauthorized persons do not enter except with prior permission from the hall manager.

3-3-2 Matching seal numbers with the attached receipt for each shipment before opening any of them.

4-3-2 Matching received denominations with the attached receipt with the shipment before distributing for counting.

5-3-2 Completing the counting process for shipments for each bank separately.

6-3-2 Exercising due professional care during the sorting of damaged cash unfit for circulation.

4-2 Cash Delivery and Receipt Locations at Banks:

1-4-2 All employees must wear the company's official uniform.

2-4-2 Carrying the company's identity verification document and personal ID.

3-4-2 Necessity of the presence of the crew leader during the receipt and delivery process.

4-4-2 Matching cash with the receipt and completing all receipt data (time, place, signature).

5-2 Feeding ATMs and Mechanism for Handling Returned Items:

1-5-2 Governance of feeding procedures and strict control: Presence of at least two persons during the feeding process for ATMs.

2-5-2 Standard Operating Procedures: Establishing written standard operating procedures for feeding ATMs and technical visits, which must include cash handling procedures, incident reporting, and safety protocols.

3-5-2 Safe Transport: Availability of appropriate measures for the safe transport of cash, armored vehicles, and GPS tracking systems connected to the company's monitoring room.

4-5-2 Insurance Coverage: Availability of suitable insurance coverage to cover potential losses and reviewing insurance policies annually.

5-5-2 Settlement and Reporting: Establishing procedures to handle shortages and surpluses, and notifying the bank of any discrepancies immediately, recording in settlement records and incident reports daily, and having a record for recording withdrawn cards, adhering to the distribution plan for each bank, recording the bank name, machine, and the first and last 4 digits of the card, and strictly prohibiting the company from delivering cards to customers.

6-5-2 Service Level Agreements (SLAs): Existence of clearly defined service level agreements between the bank and companies, specifying the company's responsibilities and performance expectations.

7-5-2 Incident Response and Emergency Planning: Establishing plans for incident response and emergency measures to deal with emergencies, such as thefts or natural disasters, and reviewing these plans and evaluating their effectiveness through scenario testing once a year.

8-5-2 Feeding Timetables: Adhering to cash feeding timetables for ATMs until the last light of the sun, and not performing any cash feeding at night, with the commitment to feed ATMs located inside branches before the morning working hours of the branches, ensuring feeding is completed before the bank branch opens in sufficient time.

9-5-2 Feeding ATMs: Feeding is done only with banknotes valid for circulation, and the feeding process must be done through the closed cassettes specific to the machine, strictly prohibiting feeding from money transport bags. Cassettes must be prepared and equipped with cash in advance (not the money transport bag system) to be installed directly in the machines, and dual control procedures must be implemented during feeding operations and lower part malfunctions.

10-5-2 Vehicles moving on highways between governorates: Affected security agencies at the Ministry of Interior must be notified in sufficient time before movement to take the necessary measures known to them and according to the coordination and instructions issued by the Ministry of Interior regarding the same, to provide the necessary security and protection on the roads, with a prohibition on vehicle movement after the last light.

6-2 Insurance Documents:

The money transport company must contract with an insurance company under the necessary insurance documents to insure: 1-6-2 Its premises and vaults to cover all types of risks related to cash (theft, fire, breach of trust, robbery, etc.).

2-6-2 Money transport vehicles according to storage capacity.

3-6-2 Employees from work risks.

7-2 Alternative Work Plan in Case of Emergency:

1-7-2 Availability of an alternative work plan and emergency plan and an alternative work place to ensure business continuity in case of emergency.

2-7-2 Sharing the alternative work plan and emergency plan with all employees in the company and ensuring they are fully aware of it.

3-7-2 The alternative premises must be equipped to accommodate 40% to 60% of the total volume of business at the headquarters.

4-7-2 Conducting a live performance test using the alternative premises at least once every 6 months.

5-7-2 Issuing a report after conducting the test showing any obstacles during plan implementation and the corrective measures taken in this regard.

8-2 Training and Qualifications:

1-8-2 Employees responsible in administrative positions must hold a high qualification.

2-8-2 Presence of elements with at least five years of experience to manage cash centers and branches.

3-8-2 Employees must receive appropriate training and have the necessary qualifications to perform their assigned tasks.

4-8-2 Keeping records of training and certificates.