Regulatory Alerts2021-03-02
Circular dated March 24, 2021 regarding the explanatory memorandum on due diligence procedures and regulating rules for financial inclusion.
The Central Bank of Egypt has issued guidelines to promote financial inclusion and facilitate citizens' transactions with banks. These guidelines include regulations for financial inclusion products and services, as well as due diligence procedures for customers. Banks have begun taking serious steps towards financial inclusion, reflected in the growth and diversification of their customer base. However, there are still significant untapped opportunities to increase financial inclusion rates and bring more citizens and economic activities into the banking sector. The Central Bank has identified obstacles that hinder citizens from opening bank accounts, including excessive documentation requirements and strict customer identification procedures. To address these issues, the Central Bank and the Money Laundering Combating Unit have agreed to issue a memorandum outlining measures to simplify the rules and procedures for financial inclusion.