In brief
In a recent circular issued on 7 August 2024, the Central Bank of Egypt (CBE) mandated Egyptian banks to open non-resident bank accounts for foreign customers not residing in Egypt. This directive aims to expand the access by foreigners to a range of banking services allowing them to benefit from the same while ensuring compliance with account opening regulations, KYC requirements and anti-money laundering laws and regulations.
The CBE emphasized the need for such a decision and noted that denying non-residents the opportunity to open accounts could heighten the risks associated with financial transactions conducted outside the regulated market and have adverse effects on the reputation of banks operating within the Egyptian banking sector.
Provided this directive extends to foreign companies, which is not made clear in the circular, this move would represent a positive step in making Egypt more investor friendly and facilitate the entry of multinationals into the Egyptian market.
For further information and to discuss what this development might mean for you, please get in touch with your usual Baker McKenzie contact.
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