Circular dated October 5, 2020 amending some of the rules governing financial inclusion

Dear Sir,

Chairman of the Board of Directors, Bank of Egypt

Greetings,

With reference to the due diligence procedures for financial inclusion products and services issued by the Anti-Money Laundering and Combating the Financing of Terrorism Unit on November 11, 2018, and its amendments in March 2020, and the rules governing the classification of financial inclusion products and services issued by the Central Bank of Egypt on July 17, 2019, which were circulated to banks as part of the Central Bank of Egypt's direction to enhance financial inclusion and work on raising its rates, consultations were held with the Anti-Money Laundering and Combating the Financing of Terrorism Unit to provide further support and facilitation for citizens and companies targeted for inclusion in the banking system,

Which includes the following:

1. Application of the procedures and rules mentioned above to opening traditional accounts for new customers without obtaining approval from the Central Bank and the Unit.

2. Facilitation for categories wishing to open accounts for micro-enterprises that do not have a record, as well as customers who are artisans and business owners (for example: artisan, electrician, plumber, carpenter, etc.) by opening accounts under the name "economic activity account" and identifying identity through an identity verification document.

3. Raising the maximum daily and monthly limits for transactions conducted on accounts for individuals, companies, and micro-enterprises.

Based on the above, and in order to achieve the maximum benefit from the rules issued by the Central Bank and to facilitate banks' access to targeted categories, the Board of Directors of the Central Bank of Egypt approved, in its session held on September 16.

First: Amendment of what was stated in the rules governing the classification of financial inclusion products and services regarding banks obtaining approval from the Central Bank of Egypt, which in turn seeks the opinion of the Anti-Money Laundering and Combating the Financing of Terrorism Unit, to become as follows:

Application of the due diligence procedures and rules for financial inclusion products and services issued in March 2020 to new customers upon opening traditional bank accounts at banks, whether current or savings,

Which do not rely on the use of modern financial technology (including savings accounts, deposits, savings certificates, etc.), without the need to obtain approval from both the Egyptian Central Bank

And the Anti-Money Laundering and Combating the Financing of Terrorism Unit, provided that customers are not classified as high-risk.

Second: Amendment of item three (1.h) to become as follows:

The maximum limits for transactions and account balances for natural persons and legal persons from companies and micro-enterprises must be set to provide more flexibility in dealing with these accounts, as follows:

1. For natural persons "individuals":
   a. Maximum account balance: Determined by the bank. b. Maximum daily limit: 30,000 EGP.
   c. Maximum monthly limit: 100,000 EGP.

2. For companies and micro-enterprises that have documents or a headquarters or are verified using any other means:
   a. Maximum account balance: Determined by the bank. b. Maximum daily limit: 40,000 EGP.
   c. Maximum monthly limit: 200,000 EGP.

3. For companies and micro-enterprises or owners of free professions and artisans of any of the above mentioned in item (2), and who conduct an economic activity that does not have documents or a headquarters, for example: artisan, electrician, plumber, carpenter, etc., who are registered under the name

"economic activity" according to the explanatory memorandum to be issued later in this regard:
a. Maximum account balance: Determined by the bank. b. Maximum daily limit: 30,000 EGP.
c. Maximum monthly limit: 100,000 EGP.

4. Due diligence procedures for bank customers issued by the Anti-Money Laundering and Combating the Financing of Terrorism Unit in February 2020 will be applied in case of exceeding the limits stipulated in the aforementioned item.

The Chairman of the Board of Trustees of the Anti-Money Laundering and Combating the Financing of Terrorism Unit also issued a decision involving the application of due diligence procedures for financial inclusion products and services to new customers upon opening traditional bank accounts at banks, whether current or savings, which do not rely on the use of modern financial technology (including savings accounts, deposits, and savings certificates, etc.), without the need to obtain approval from both the Central Bank of Egypt and the Unit

Anti-Money Laundering and Combating the Financing of Terrorism, provided that customers are not classified as high-risk.

It is worth noting that an explanatory memorandum will be issued addressing clarifications regarding due diligence procedures for financial inclusion products and services, in collaboration with the Anti-Money Laundering and Combating the Financing of Terrorism Unit.

Please accept the highest respect,

Tarek Amer