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The Board of Directors of the Central Bank of Egypt (CBE) decided, at its meeting of August 5, 2019, to set standards for the practice of exporting and l '. importing notes in excess of foreign currency.
In its instructions published on its website, the EPC stated that the new standards were part of the ongoing efforts of the Central Bank of Egypt to maintain the sound performance of the banking system, making reference to periodicals laying down certain rules for exporting and importing surplus foreign currencies abroad. March 2018, to set standards to regulate this activity in the Egyptian banking market.
The criteria are:
Banks wishing to export and import surplus securities in foreign currencies must apply to the Banking Department of the Central Bank of Egypt to issue a license to carry out this activity in January of each year. , provided that the following conditions are met:
The bank's board of directors must approve and document its policies and procedures for all operations related to the export and import of banknotes (banknotes), as well as the and procedures relating to operations against money laundering and terrorist financing.
B) Availability of effective internal control systems for operations related to the export and import activities of banks.
C- The Bank must approve the contracts of the Legal Department, Risk Management and Compliance before signing them with the parties related to the export and import of the ticket, provided that they include all details and responsibilities of each party, as well as the regulations on the fight against money laundering and the financing of terrorism.
D- Employees involved in this activity must take courses in the management of foreign currency notes such as counterfeit and other banknotes, as well as introductory courses on anti-money laundering instructions and the financing of terrorism, particularly with respect to operations related to the export and import of currency banknotes.
2. Banks are not allowed to outsource the foreign exchange surplus to a company to export funds to the territory of the Arab Republic of Egypt, except with the prior agreement of the Bank Central.
3. Banks are allowed to enter into contracts with financial institutions (banks / exchange companies) abroad to carry out the process of currency export. To address the risk of non-payment, the following criteria must be met:
The establishment must be subject to one of the supervisory bodies and obtain the approval of the supervisory authority to carry out this activity.
B) At least five years have pbaded since its creation and practice.
Not subject to sanctions or fines by the supervisory authority of the country in which it operates, nor to sanctions related to money laundering operations by third parties.
(D) Approving and documenting by the Board of Directors the AML / CFT Procedures with respect to the shipping / exporting and importing activities of banknotes in foreign currency, as well as the systems necessary for their application. Banks should expand the network of contractable financial institutions to ensure the continuity of export activities and not focus on a limited number of institutions.
4. Banks must continuously badess all customers regarding the export and import activities of the ticket (eg insurance, transport companies, etc.).
5. In the course of any transaction involving the export of excess banknotes, the banks shall apply the following procedures:
A- Confirmation that the export will be carried out by the authorized bank or by one of the authorized banks to carry out the export business of the excess currency banknotes by the Central Bank of… Egypt.
B- The volume of exports at a time must not exceed 100 million US dollars and its equivalent for all currencies in circulation.
C) Submit a statement indicating that a sufficient balance is available for the operational need other than the amounts to be exported.
D) Submit a statement indicating that the foreign currency banknotes to be exported are set aside and entirely to the bank's treasury.
E- Publication of the currencies to be exported on the Reuters bank page, including the components of this excess of currency types – without quantities – throughout the day before the application is filed at the Central Bank for export approval, provided that a copy of it is attached to the export approval application.
(F) The Bank shall submit to the banking sector of the Central Bank an export request at least one day before the date of export for approval.
(G) The issuing bank fully recognizes its obligation for all export transactions, the commitment to value its accounts with its correspondents abroad at the due date.
H- The bank must insure the ticket to be exported with one of the insurance companies.
I- The need to comply with the instructions of the Central Bank of Egypt regarding security policies and procedures for securing the banking system published in May 2018, in particular the seventh element, which includes securing the transfer of funds between banks and various payment centers when transferring tickets to the airport.
J- The Bank must authorize the General Directorate of Foreign Operations in the area of export banking to export an indication of the quantity exported, as well as a copy of the documents indicating that the Bank has received the actual value of the foreign currency notes in the books of previous correspondents, indicating the exchange rate and the due date. No later than ten days after the date of export.
6. The Central Bank of Egypt has the right to revoke the export license of currency banknotes at any time without giving any reason.
For foreign exchange notes not included in the currency conversion list of the Central Bank of Egypt, banks are allowed to use the relevant companies abroad in the field of shipping tickets. / export and import, provided that the volume of the transaction does not exceed the equivalent of 10 million US dollars and is not less than the equivalent of 2. Each transaction is submitted separately to the Central Bank – Banking Sector – for review and approval.
8. If the bank wishes to import foreign currency banknotes, a request must be made to clarify the bank's justification for the banking sector at the Central Bank of Egypt for study and approval.
Finally, the new instructions issued by the deputy governor of the Central Bank Jamal Najm gave the banks a reconciliation period of six months from the date of issue.
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