Regulatory Alerts2018-05-23
Added · Updated
Circular dated May 22, 2018 regarding the need for banks to ensure that associations obtain a license to collect donation funds before opening accounts for them
Banks are required to verify that associations hold a license to collect funds from the Ministry of Social Solidarity before opening accounts for them or collecting donation funds. This requirement applies to associations included in banks' lists of permitted donation recipients, ensuring compliance with the provisions of Law No. 70 of 2017 regarding the regulation of the work of associations and other institutions operating in the civil sector.
Cairo: May 22, 2018
Dear Sir, Chairman of the Board of Directors Bank
Greetings,
With reference to the fact that some banks include the names of certain associations in the list of entities permitted to receive donations from customers, without those associations obtaining a license to collect funds in violation of the provisions of the Law Regulating the Work of Associations and Other Institutions Operating in the Civil Sector issued by Law No. 70 of 2017, I wish to draw attention to the necessity of confirming in advance that the aforementioned associations have obtained a license to collect funds from the Ministry of Social Solidarity before allowing accounts to be opened for them and collecting donation funds through them.
Please be so kind as to advise taking the necessary action in this regard.
Accept, please, the highest assurances of respect.
Gamal Naguib