Egypt’s Central Bank Steps Up Financial Institution Security Measures

The Central Bank of Egypt (CBE) has introduced new regulations to enhance financial security in Egypt by standardizing fund transfer mechanisms and ensuring stringent security measures are in place.

Key Regulations and Guidelines

To achieve this, the CBE has mandated several key security measures:

• Thorough Security Checks: Banks must conduct thorough security checks on money transport companies through their security department following specific guidelines.
• Contracts with Money Transport Companies: Contracts between banks and these companies must permit both parties access to the company’s information and data.

ATM Replenishment Guidelines

For ATM replenishment, the CBE emphasizes the importance of:

• Minimum Two-Person Presence: At least two personnel must be present during the process.
• Secure Cash Transportation Methods: Armored vehicles equipped with GPS tracking linked to the control room of the respective company must be used.
• Adequate Insurance Coverage: The regulations require adequate insurance coverage for potential losses, annual insurance policy reviews, established protocols for handling discrepancies, and immediate reporting of any variances to the bank.

Service Level Agreements

The CBE also emphasizes the importance of well-defined service level agreements between banks and companies, detailing:

• Responsibilities: Responsibilities of both parties must be clearly outlined.
• Performance Expectations: Performance expectations must be set and reviewed annually.
• Contingency Plans: Contingency plans for emergencies such as theft or natural disasters must be established and reviewed annually.

Restrictions on ATM Replenishment

The regulations also impose restrictions on ATM replenishment, including:

• Daylight Hours Only: The process must only take place during daylight hours.
• Circulated Notes: The use of circulated notes is required.
• Pre-Filled Cassettes: Pre-filled cassettes must be used.
• No Money Transport Bags: The use of money transport bags is prohibited.
• Continuous Dual Supervision: Continuous dual supervision is required throughout the replenishment process.

Notification and Security

Finally, the CBE emphasizes the importance of banks notifying the Ministry of Interior’s security services well before any cash movement to ensure necessary security measures and protection are provided. Notably, the movement of money transport vehicles is prohibited during evening hours, further highlighting the emphasis on securing financial transactions in Egypt.