Official Gazette - Issue No. 37 Reciprocal (W) on 15 September 2020

Law No. 194 of 2020

Issuing the Law on the Central Bank and the Organized Financial Market

In the Name of the People President of the Republic

The House of Representatives has decided the following law, which we have issued:

(Article One)

The provisions of the accompanying Law shall apply to the Central Bank, the organized financial market, exchange companies, money transfer companies, credit information and rating companies, credit guarantee companies, payment system operators, and payment service providers.

(Article Two)

The provisions of the Law on Joint Stock Companies, Companies Limited by Shares, Limited Liability Companies, and Single-Person Companies issued by Law No. 159 of 1981 shall apply to the banks and companies subject to the provisions of the accompanying Law, in matters not addressed therein or in the regulations and decisions issued in implementation thereof. The Central Bank shall be the competent administrative authority, and the Governor of the Central Bank shall be the competent Minister in applying the provisions of the Law on Joint Stock Companies, Companies Limited by Shares, Limited Liability Companies, and Single-Person Companies to the entities subject to its supervision in accordance with the provisions of the accompanying Law.

The provisions of the Commercial Law issued by Law No. 17 of 1999 shall also apply to the transactions of the Bank with its clients, whether they are merchants or non-merchants, if the nature of these transactions so requires.

(Article Three)

The phrase "Banks wholly owned by the State" is replaced by the phrase "Public Sector Bank" wherever it appears in the laws and decisions in force.

(Article Four)

The entities subject to the provisions of the accompanying Law shall be exempt from obstacles to their status in accordance with its provisions within a period not exceeding one year from the date of its implementation. The Board of Directors of the Central Bank may extend this period for one or more periods not exceeding two years.

(Article Five)

The Board of Directors of the Central Bank shall issue the regulations and decisions implementing the provisions of the accompanying Law, which shall be published in the Egyptian Gazette. Until these regulations and decisions are issued, the existing regulations and decisions shall remain in force insofar as they do not conflict with its provisions.

(Article Six)

The Board of Directors of the Central Bank shall continue in its current composition to exercise its duties and powers until the expiration of its term. Similarly, the boards of directors of the banks shall continue in their current compositions to exercise their duties and powers until the expiration of each of their terms.

(Article Seven)

The Law on the Central Bank, the Organized Financial Market, and Currency issued by Law No. 88 of 2003 is repealed. Article (1) of Law No. 11 of 1940 concerning the sale of commercial establishments and their contents is repealed. Article (1) of Law No. 19 of 1975 strengthening certain rights and obligations of the Industrial Bank is repealed.

Article (94) of the Law on Joint Stock Companies, Companies Limited by Shares, Limited Liability Companies, and Single-Person Companies issued by Law No. 159 of 1981 is repealed. Article (21) of the Law on the Establishment of the Egyptian Bank for Export Development issued by Law No. 95 of 1983 is repealed.

Subject to the provisions of international agreements concerning the establishment of certain banks in the Arab Republic of Egypt, every provision conflicting with the provisions of this Law and the accompanying Law is repealed, including the provisions contained in the laws concerning the establishment of certain banks regarding the minimum capital, the Central Bank's supervisory and oversight powers, early intervention, and the settlement of troubled banks, account secrecy, and foreign exchange transaction rules.

(Article Eight)

This Law shall be published in the Official Gazette and shall be implemented from the day following its publication. This Law shall be sealed with the State seal and executed as one of its laws. Issued at the Presidency of the Republic on 27 Muharram 1442 AH (Corresponding to 15 September 2020 AD) Abdel Fattah el-Sisi