Regulatory Alerts2026-04-02
A circular dated April 2, 2026 regarding the establishment of a specialized department to manage and combat fraud in banks
The Central Bank of Egypt mandates all banks to establish a specialized fraud management and combat department, reporting through the risk sector to the Board's risk committee, with responsibilities encompassing strategy development, risk assessment, and continuous monitoring of all banking and digital products. This new framework requires banks to conduct objective fraud risk assessments, maintain internal warning lists for involved parties, and ensure external partners comply with anti-fraud policies, alongside conducting technical examinations and creating corrective plans for detected fraud. Banks must also obtain prior Central Bank approval for new fraud combat officers and report all fraud cases through the Central Department for Combating Fraud and Financial Crimes, with a six-month period granted for full compliance with these new regulations.