2023-10-29

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Circular dated October 29, 2023 regarding controls on the use of credit cards for purposes of traveling abroad

The Central Bank of Egypt requires banks to open credit card accounts for customers traveling abroad based on branch manager approval. Banks must monitor the duration of the customer's stay abroad, verifying it does not exceed 90 days via passport stamps or other documents, and must suspend the card if the stay exceeds this limit. Banks must report customer scores to the Credit Bureau, notify the Central Bank of these scores, and provide details of customers with negative credit scores to the relevant authorities.

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Egypt

Central Bank of Egypt

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Cairo: October 29, 2023

Dear Mr. Chairman,

Greetings,

With reference to the decisions issued regarding the issuance of credit cards for travelers, and in light of the Central Bank's instructions on the issuance of credit cards for travelers, it has been decided as follows:

  1. Banks shall open credit card accounts for customers traveling abroad based on the approval of the branch manager or the relevant department to verify the application.

  2. The bank shall monitor the customer's file to confirm the duration of their stay abroad, based on the stamps in the passport or other documents, or the passport itself, for a maximum period of 90 days. If the customer's stay abroad exceeds the aforementioned period, the bank shall suspend the card.

  3. In case of customer default, the bank shall take the following actions:

  • Suspend the card.
  • Report the customer's score to the Credit Bureau (Score-I) to determine the credit status of such customers.
  • Notify the Central Bank of these customers' scores, along with the details of customers who have been issued credit cards with negative scores, to enable the Central Bank to notify the relevant authorities and take the necessary measures regarding these customers in this regard.

Please be guided to comply with the above, noting that you will be informed of the implementation mechanism subsequently.

Accept our highest regards,

Hassan Abdallah