EGYPT Law and Practice Contributed by: Mahmoud S. Bassiouny, Iman Nassar, Habiba Gamaleldin and Israa Mostafa, Matouk Bassiouny
10. DORA 10.1 DORA Requirements
limits in foreign currency, the CBE issued a cir - cular on 11 February 2024 to outline and con - firm the measures to be taken against individuals who fail to comply with such regulations within 90 days. At present, there are no additional spe - cific controls or limitations on foreign currency transactions. Introduction to the Regulatory Framework of Digital Banking In conformity with the CBE policies towards financial inclusion and digital transformation, the CBE issued new regulations on the licens - ing framework for digital banks on 12 July 2023. Definition of digital banks and scope of activities The aforesaid regulations define digital banks as “those providing banking services through digi - tal channels or platforms, using modern tech - nology”. The activities of digital banks remain subject to the following, among others: • conducting banking activities in accordance with CBE Law No 194 of 2020 and CBE regu - lations, except for extending credit facilities to large corporations (as further outlined below); and • establishing a headquarters for joint-stock company digital banks and a head office for their branch counterparts. The aforesaid regulations set out the licensing requirements for applicants as well as the regu - latory and supervisory policies. These include: • registration with the CBE; • compliance with the supervisory regulations issued by the CBE, as periodically updated; • limiting individual customer deposits, includ - ing those from related parties, to 1% of the
Although Egyptian laws and regulations do not currently include the Digital Operational Resil - ience Act (DORA), the CBE places significant emphasis on the development and protection of digital systems and technologies within banking operations. Through various circulars, the CBE has extensively addressed this issue, highlight - ing the responsibility of all entities in the banking sector to safeguard their transactions and pro - tect their customers from risks associated with technology and IT failures.
11. Horizon Scanning 11.1 Regulatory Developments Restrictions on Foreign Currency- denominated Transactions
Due to the foreign currency shortage in Egypt’s economy that occurred in 2023, principally as a result of foreign currency withdrawals abroad (often attributed to the overuse of debit and credit cards in international transactions), on 9 October 2023 it was reported that the CBE had verbally instructed banks to ban their customers from using debit cards linked to EGP accounts for foreign currency-denominated purchases or withdrawals. Further, on 18 October 2023, it was reported that the CBE had verbally instructed banks to impose limits on the use of credit cards for foreign currency-denominated transactions (namely USD250 per month). It is important to note that these restrictions have since been removed. However, in reference to the guidelines set forth in the circular dated 29 October 2023 requiring customers planning to travel abroad to inform their banks of their travel plans in advance to retain their usual credit card
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