Central Bank of Egypt regulates commercial registration, documentation at banks

Step comes in light of strengthening cooperation between banking sector, ITDA, Notary Public

The Central Bank of Egypt (CBE) has approved the general framework and issued the controls to provide commercial registration services within banks.
These controls included allowing banks operating in Egypt and registered with the CBE to provide commercial registration and documentation services within their branches to their customers only, as a first stage.
Agreements are concluded to provide those services in cooperation with the Ministries of Supply and Internal Trade, and Justice.
In a letter, the CBE said that banks wishing to provide commercial registry and documentation services within their branches must apply to their banking affairs sector to obtain its approval. This comes after fulfilling the controls and procedures before contracting with the Ministries of Supply and Internal Trade, and Justice.
These controls include the commercial registry committing to the controls issued by the two ministries, and documentation offices committing to the controls issued by the Ministry of Justice.
In addition, banks must also completely separate the activities of the commercial registry from banks' activities, and ensure compliance with disclosure and transparency requirements.
The CBE pointed out that the move comes to strengthen the cooperation between the banking sector and the Internal Trade Development Authority (ITDA), which falls under the Ministry of Supply and Internal Trade.
It also falls within the Real Estate Registry of the Ministry of Justice, with the aim of providing commercial registry services as well as documentation services to customers through bank branches.
According to the CBE, the controls for providing this service include:
The beneficiary of the commercial registry services and real estate registration within bank branches.
Commercial registry services can be provided within the branches of banks registered with the CBE. Meanwhile, documentation services are provided to bank customers only as a first stage through the branches of banks whose shares are wholly owned by the state. Moreover, banks are entitled to conclude agreements with the Ministry of Supply and Internal Trade, represented by ITIDA, to provide some of the services through the commercial registry within bank branches.
Controls and procedures to be followed to provide commercial registration and real estate registration services (authentication).
Outlets that provide commercial registration and documentation services within bank branches are only channels to provide services to customers through the employees of the commercial registry and the real estate registry. The bank is not responsible for these services. The Ministry of Supply and Internal Trade and the Ministry of Justice are responsible for these services.
A separate space will be allocated in banks to provide these services through employees with the Ministry of Supply and Internal Trade, and the Ministry of Justice. These services will be completely separate from the banking products and services within the branch.
It should be clearly announced that the services provided through the commercial registry inside the branch are issued by the Ministry of Supply and Internal Trade. The services provided through the documentation outlet inside the branch are issued by the Ministry of Justice.
All documents related to commercial registration and authentication services should be published by the Ministry of Supply and Internal Trade, and the Ministry of Justice alone, including marketing materials.
A separate acknowledgment letter from customers must be obtained stating that they are aware that the services provided through the commercial registry port and the authentication port of the bank branch belong to the Ministry of Supply and Internal Trade, and the Ministry of Justice alone, and not the bank.
The two ministries bear all risks arising from these services. The bank would no longer be an involved party, therefore it is not bound by any contracts made between any customer and executors. An acknowledgment should be obtained from the Ministry of Supply and Internal Trade and the Ministry of Justice stating that they are fully responsible for settling disputes and resolving any complaints that may arise from providing commercial registration and documentation services within the bank's branches.
An acknowledgment letter from the two ministries must be obtained stating that they are fully responsible for settling disputes that may arise as a result of providing these services in banks.
Compliance is a must with what was stated regarding the confidentiality of customers' accounts and data in Articles 142 and 140 of the CBE Law No. 194 of 2020.
General provisions of the contract between the bank and the Ministry of Supply and the Ministry of Justice.
General provisions must be taken into account when a contract is signed between a bank and any of the aforementioned ministries. This is provided that the contract signed between the bank and the two ministries includes the following as a minimum:
* Commercial registration and documentation services provided through the bank's branches.
* The bank's share of expenses and commissions of the services provided and the basis for their calculation.
* Mechanism for dealing with complaints received from customers.
* Importance of reporting the data and number of employees and their substitutes to provide the services and obtain the bank's approval for that.
Announcements relating to the commercial registry and documentation services that are provided through the commercial registry and documentation outlet will be placed within the bank, as well as the areas where outlet employees are allowed inside the bank's branches.
There should also be details of the dispute resolution mechanism, taking into consideration the above acknowledgement.
There should also be a special account opened at the bank to provide these services. Only transactions involving collecting or depositing fees shall take place, and no cash transactions shall take place between customers and employees.
Bank employees are allowed to market banking products and services to customers visiting the branch for commercial registry and documentation services.
Banks can advertise on their websites, as well as on the front of branches that commercial registration and documentation services are available.
Before contracting with the Ministry of Supply and Internal Trade or the Ministry of Justice, banks shall submit an application to the CBE's Banking Affairs Sector.
This is with the aim of obtaining approval to provide commercial registration and authentication services within their branches. This step comes after fulfilling all the stipulated controls and procedures and getting all necessary approvals from concerned sectors.
The CBE's Banking Affairs Sector shall be informed if the bank stops providing the aforementioned services in its branches or makes any amendments to the contract concluded with the Ministry of Supply and Internal Trade or the Ministry of Justice.
An application must be submitted to obtain the prior approval of CBE.
This will take place if the Ministry of Supply or the Ministry of Justice and any of their agencies monitor and supervise the outlets that provide these services in bank branches.