Central Bank of Egypt reveals major foreign exchange fraud

The Central Bank of Egypt has announced that it is monitoring a series of illegal activities related to the foreign exchange market, which are aimed at destabilizing the country’s monetary and financial stability.

The central bank said in a statement that it has noticed a steady increase in the use of credit cards and direct debit cards outside the country, despite the presence of customers for whom these cards were issued domestically, since it peaked in the middle of last week, with amounts amounting to $55 million per day One, with an increase of more than 5 times the daily average in the last quarter of the previous year, indicating the misuse of these cards, and this necessitated the adoption of procedures and controls that prohibit the misuse of credit cards and cards direct debit for customers who prove they did not leave the country, and control provisions for requests to purchase foreign currency for travel abroad.

On the other hand, the bank continued, “On the other hand, the necessary measures will be taken in coordination with the relevant authorities to verify whether the customer has traveled or not, and in the event that the customer has not traveled or misused the cards, card transactions will be terminated, and The Egyptian Credit Investigation Company as well as the relevant authorities will be informed of this in order to take all necessary action in this regard.

The Central Bank also gave strict instructions to banks to take into account the establishment of sufficient limits to meet the real needs of customers in foreign currency, especially for training and card treatment, while maintaining the same limits for customers located abroad. until the release of new controls on December 22, 2022, as well as not adhering to any limits on customer cards. Those who have accounts in foreign currencies and use them are paid in the same currency.

The bank also revealed that some people traded goods within the Arab Republic of Egypt in foreign currency, in addition to monitoring violations of money transfers from Egyptians living abroad through illegal channels that are not authorized to carry out these transfers, in violation of the provisions of Article 212 of the Central Bank Law. bank and the Central Bank. A banker promulgated by Act No. 194 of 2020 providing for a breach of it punishable by imprisonment for a term of three to ten years and a fine of not less than one million pounds sterling and not more than five million pounds sterling or the amount money that is the subject of a crime, whichever is greater, for anyone who engages in foreign exchange transactions outside banks, approved or licensed organizations or carries out money transfer activities without obtaining a license in accordance with the provisions of section (209) of this law.

Others, according to the Central Bank, have created companies of a special nature outside the country that act as intermediaries, especially in the field of exports and tourism, and aim to keep foreign currency outside the country and dispose of it outside the legal field. In addition, some of these companies request the purchase of foreign exchange from the Egyptian banking sector, despite the fact that they store the accumulated foreign exchange earnings abroad. In the event that this is proven, all prescribed measures will be taken against these companies and their shareholders.

The central bank confirms that the banking system has played an effective role in releasing about $5 billion worth of goods from ports since the beginning of this month to meet the needs of the market.

On the other hand, the Central Bank of Egypt maintains that the privacy of bank customer accounts in Egypt is not compromised, for which the Central Bank and Banking System Law has established strict guarantees to protect them, as it guaranteed the protection of confidentiality. data of banking customers, accounts, deposits, trusts and safes in banks, as well as the confidentiality of transactions related to them The law also provides that it is not allowed to view them or transfer data about them to any party, directly or indirectly, except with a written permission of the owner of the account, deposit, trust or treasury, or one of his heirs, or one of the assigns of all or some of these funds, or his legal representative or representative, or based on a court or arbitration award.

In conclusion, the Central Bank emphasizes that it is closely following the developments in the foreign exchange market and takes all necessary measures to counter any actions that damage the national economy, and also takes all necessary measures to control the market and achieve stability. monetary conditions in the near future.

Source: RT

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