– The Central Bank of Egypt (CBE) has introduced new controls for banks regarding the continuous updating of client data during due diligence procedures.
– These measures aim to enhance the security of client data and safeguard their rights.
– Key provisions include mandatory data updates within a specified period, multiple notifications for clients, and the prohibition of transaction halts due to outdated data.
The Central Bank of Egypt (CBE) has recently implemented new controls for banks concerning updating client data, information, and documents during due diligence procedure, according to media reports.
These measures are designed to enhance the security of client data and safeguard their rights.
Under these new regulations: Banks are now required to update client data within a specified maximum period.
Customers must be informed before and after the update, utilizing at least two communication channels such as SMS (in Arabic and English), push notifications, ATMs, emails, and pre-recorded phone calls.
If clients fail to update their data, they will receive three notifications over three consecutive months, outlining the actions that will be taken.
Due to outdated data, banks cannot halt various transactions, including disbursements, check collections, cash deposits, incoming transfers, cash withdrawals, electronic purchases via direct debit cards, existing standing instructions, or credit facility payments.
Customers will not incur any expenses or fees due to delayed data updates.
Data updates must be completed before customers can conduct transactions at a bank branch.
Banks are prohibited from sending links to customers for data updates or notifications to prevent fraudulent operations.
Banks must seek CBE’s approval before implementing technical solutions for electronic data updates. Banks may conduct home visits to update data for people with disabilities and the elderly. Banks are encouraged to develop incentive programs to encourage timely data updates.
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