Official Gazette - Issue No. 24 (Duplicate) on June 21, 2005

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Law No. 93 of 2005

Amending Certain Provisions of the Central Bank, Banking System and Currency Law Issued by Law No. 88 of 2003

In the Name of the People

The President of the Republic
The People's Assembly has decided the following law, which we hereby enact:

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(Article One)

The following texts shall replace the texts of Articles (53) paragraph two, and (55, 89, 91, 99, 100, 101, 102 paragraph one, 103 paragraph one, 104 paragraph two, 115, and 121) of the Central Bank, Banking System and Currency Law issued by Law No. 88 of 2003:

Article (53) Paragraph Two:

If ownership is acquired through inheritance, bequest, or as a result of subscribing to shares offered in a public offering, a request to continue ownership must be submitted within thirty days from the date the applicant becomes aware of the acquisition through inheritance, bequest, or public offering.

Article (55):

«The concerned party shall be notified of the decision to approve or reject the request referred to in Article (53) of this Law within two years from the date of submission, via a registered letter with proof of delivery, and the rejection decision must be reasoned.

In the event of a decision rejecting the applicant's continuation of ownership of the portion acquired through inheritance, bequest, or as a result of shares allocated in a public offering, the Central Bank shall issue a decision regarding their disposal within one year from the date of notification of the rejection decision if the ownership is by inheritance or bequest, and within three months if the ownership is as a result of a public offering. The Central Bank may extend this period by no more than one year. Failure to dispose of the shares within this period shall entitle the owner to voting rights in the General Assembly or on the Board of Directors, for the portion exceeding the limit stipulated in Article (53) of this Law.»

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Article (89):

«Without prejudice to the provisions of Article (43) of this Law, public sector banks shall be subject to the same provisions applicable to other banks, except for special provisions stipulated in this Chapter. In all cases, those banks and their employees shall not be subject to the provisions of laws and regulations applicable to public sector companies and the public business sector.»

Article (91):

«The Bank's Board of Directors shall approve all internal work regulations and ratify the salary, incentive, and allowance schedule, subject to what is stipulated in the Labor Law issued by Law No. 12 of 2003. The Bank's Board of Directors may establish one or more systems to evaluate its employees based on their performance rates, volume, and level of work achievement, without being bound by the provisions of laws and regulations applicable to public sector companies and the public business sector.»

Article (99):

«The Central Bank shall exchange with banks information and data regarding customer indebtedness and the credit facilities granted to them. This information and data shall also be exchanged with real estate financing companies, financial leasing companies, and credit information and rating agencies. The Central Bank's Board of Directors shall establish the rules governing this exchange, ensuring the confidentiality of information and data and guaranteeing the availability of what is necessary for the sound provision of credit.

The Board shall also establish the rules to be followed in preparing comprehensive inspection reports on banks, in preparation for selling all or part of their shares or for their merger.»

Article (100):

«The heads and members of the boards of directors of banks, real estate financing companies, financial leasing companies, and credit information and rating agencies, as well as their managers and employees, are prohibited from providing, creating, or allowing third parties to access any information or data regarding customers, their accounts, deposits, trusts, inventories, or transactions related thereto, except in cases permitted under the provisions of this Law.

This prohibition shall apply to anyone who receives or is informed, by virtue of their profession, position, or work, directly or indirectly, of the aforementioned information and data.»

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Article (101):

«The provisions of Articles (97 and 100) of this Law shall not prejudice the following:

(a) Duties legally required to be performed by bank account auditors and the authorities legally granted to the Central Bank.

(b) The bank's obligation to issue a certificate stating the reasons for rejecting a check's payment, upon the request of the entitled party.

(c) The right of the bank, real estate financing company, or financial leasing company to disclose all or part of the data regarding the customer's transactions necessary to prove the bank's or company's right in a judicial dispute arising with the customer concerning these transactions.

(d) What is stipulated by laws and rulings regarding the regulation of combating money laundering.

(e) The information and data provided by credit information and rating agencies in accordance with the rules approved by the Central Bank's Board of Directors.»

Article (102) Paragraph One:

«Without prejudice to the provisions on the registration of official mortgages on properties and the provisions of the Real Estate Financing Law issued by Law No. 148 of 2001, the bank or mortgagor shall submit a request to register the mortgage on the real estate assets provided to banks and international financing institutions as collateral for financing and credit facilities to the Real Estate Registration Office within whose jurisdiction the property is located, accompanied by the title deed and a certificate of real estate transactions, including the names and data of the parties to the mortgage contract, and a statement of the credit facility or financing value and its terms. The request shall then be registered in a special register at the competent Real Estate Registration Office.»

Article (103) Paragraph One:

«Without prejudice to the exemptions and reliefs legally stipulated regarding fees for official mortgages, all fees due on official and commercial mortgages provided to banks and international financing institutions for financing and credit facilities, as well as for renewing and modifying the value of these mortgages or any of their terms, shall be reduced by half. The maximum limit for these fees shall be as follows:»

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Article (104) Paragraph Two:

«Commercial premises may be mortgaged with foreign banks and international financing institutions as collateral for financing and credit facilities to be used in the Arab Republic of Egypt.»

Article (115):

«A currency exchange company must take the form of a joint-stock company, all of its shares must be registered and held by Egyptians, its sole purpose must be conducting exchange operations, and its paid-up capital must not be less than five million Egyptian pounds.»

Article (121):

«Anyone who violates any of the provisions of Articles (51), (57), and (55) of this Law shall be punished with a fine of not less than one hundred thousand Egyptian pounds and not exceeding one thousand Egyptian pounds.»

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(Article Two)

The following new articles, numbered 43 bis, 67 bis, 102 last paragraph, 115 bis, 123 paragraph two, and 135 last paragraph, shall be added to the aforementioned Central Bank, Banking System and Currency Law:

Article (43) Bis:

«A member of the board of directors of a bank subject to the supervision of the Central Bank shall not, whether in a personal capacity or as a representative of another, combine their membership with membership on the board of directors of another bank subject to the Central Bank's supervision in any capacity of management or advisory work therein.»

Article (67) Bis:

«The Central Bank's Board of Directors shall be authorized to license companies to provide credit information and rating services related to the indebtedness of customers of banks, real estate financing companies, and financial leasing companies, and their managers applying for credit facilities from suppliers of goods and services. A credit information and rating company must take the form of an Egyptian joint-stock company, its sole purpose must be providing credit information and rating services, and its paid-up capital must not be less than five million Egyptian pounds. The Central Bank's Board of Directors shall, by decision, determine the rules, conditions, and procedures for licensing, the work system for these companies, and the Central Bank's supervision system over them.»

Article (102) Last Paragraph:

«The provisions of Articles (112) to (127) of the Real Estate Financing Law issued by Law No. 148 of 2001 shall apply to the enforcement of the bank's mortgaged property.»

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Article (115) Bis:

«The Central Bank's Board of Directors shall be authorized to license companies to provide money financing services. A money financing company must take the form of an Egyptian joint-stock company, its sole purpose must be money financing services, and its paid-up capital must not be less than five million Egyptian pounds.

The Central Bank shall maintain a register for the registration of these companies.

The Central Bank's Board of Directors shall, by decision, determine the rules, conditions, and procedures for licensing, the work system for these companies, and the Central Bank's supervision system over them.

The provisions of this Article shall apply to branches operating in Egypt of foreign companies, except for the capital requirement.»

Article (123) Paragraph Two:

«Anyone who commits fraud or deception in providing information or rating services with the intent of fraudulently obtaining credit shall be punished with a fine of not less than ten thousand Egyptian pounds and not exceeding one hundred thousand Egyptian pounds, in addition to any judgment awarded based on the damage suffered by the credit provider due to the fraud or deception committed.»

Article (135) Last Paragraph:

«(a) In the event that a violation is established against a credit information and rating company or a money financing company, the license granted to the company may also be revoked.»

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(Article Three)

Existing money financing service companies and currency exchange companies are required to adjust their status in accordance with this Law within one year from the date of its implementation.

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(Article Four)

This Law shall be published in the Official Gazette and shall take effect from the day following its publication.

This Law shall be sealed with the State Seal and executed as one of its laws.

Issued by the President of the Republic on 13 Jumada al-Awwal, 1426 AH (Corresponding to June 20, 2005 AD)

Hosni Mubarak