CBE allows banks to open accounts for foreign nationals

The bulletin clarified that no restrictions are preventing the opening and management of accounts for non-resident foreign customers, as long as the relevant regulations and procedures governing account openings are adhered to. This includes full compliance with the laws and regulations set by the Central Bank and the Anti-Money Laundering and Terrorist Financing Unit.

The update follows a previous bulletin issued on April 19, 2019, which addressed complaints from foreign customers regarding some banks' refusal to open accounts for non-residents. Such practices were highlighted as limiting access to banking services, potentially leading to increased financial transactions outside the formal banking sector.

The Central Bank emphasised that these practices pose risks to customer relations and the reputation of banks operating in Egypt, reaffirming its commitment to maintaining the integrity of the Egyptian banking sector.

Regulatory environment

Egypt's regulatory environment, particularly in the context of AML and counter-terrorism financing (CTF), is shaped by a strong commitment to combating financial crimes and aligning with international standards. The country has implemented a robust legal framework that includes the Anti-Money Laundering Law No. 80 of 2002, which was amended in 2020 to strengthen enforcement mechanisms and expand the scope of offenses covered. This legislation mandates strict due diligence, reporting, and record-keeping requirements for financial institutions to prevent money laundering and terrorist financing activities. The regulatory framework is updated to address emerging risks and to ensure Egypt's compliance with global AML/CTF standards set by organisations such as the Financial Action Task Force (FATF).

The Central Bank of Egypt (CBE) plays a pivotal role in overseeing the implementation of AML and CTF regulations within the banking sector. As the primary regulator, the CBE issues guidelines and directives to ensure that banks and financial institutions adhere to the necessary procedures for identifying and reporting suspicious activities. The Central Bank also conducts regular audits and inspections to monitor compliance, imposing penalties and corrective measures on institutions that fail to meet regulatory requirements. The CBE's vigilance is crucial in maintaining the integrity of Egypt's financial system and in fostering a safe environment for both domestic and international banking activities.

Complementing the efforts of the Central Bank is Egypt's Anti-Money Laundering and Terrorist Financing Unit (AMLTFU), which operates as an independent entity responsible for receiving, analysing, and disseminating financial intelligence related to suspicious transactions. The AMLTFU collaborates closely with both domestic and international agencies, including law enforcement and financial regulators, to facilitate the detection and prevention of illicit financial activities. By coordinating efforts between various stakeholders, the AMLTFU enhances the overall effectiveness of Egypt's AML/CTF regime, ensuring that the country's financial institutions remain compliant with both national laws and international obligations.