Internal Control Instructions for Banks

Mr. / Chairman of the Board of Directors
Cairo, 2 September 2014

Bank

Greetings,

In the field of regulatory oversight, in recognition of the efforts of the Central Bank of Egypt to apply international best practices in internal control and establish the concept of governance within the banking sector, and in reference to the discussion paper issued in this regard.

We kindly request you to be informed that the Board of Directors of the Central Bank of Egypt, in its meeting held on 19 August 2014, approved the Regulatory Instructions for the Development of Internal Control Systems in Banks (a copy is attached), with the necessity of observing the following:

First:
All banks operating in Egypt are committed to applying the aforementioned instructions with the aim of maintaining the stability and safety of the Egyptian banking system and keeping pace with international best regulatory practices in this regard. Banks shall be granted a grace period of six months to align their status with these instructions.

Second:
These instructions complement what is currently implemented in banks. In the event of any conflict, these instructions are the mandatory ones to be applied.

Third:
Compliance with these instructions will be verified - as a minimum - through the Supervision and Inspection Sector. Banks must provide the aforementioned sector (Office Supervision Department) with a specific timeline regarding the extent of compliance during the adjustment period.

Accept our highest respect,

Hesham Ramzy Abdelhafez
Central Bank of Egypt
Supervision and Inspection Sector

Internal Control in Banks

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