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Bank Accounts

الحسابات البنكية - Bank accounts

In the light of the development of transactions between individuals, whether natural or legal persons, especially in commercial aspects and generally in all aspects of financial transactions and the rapid spread of that development in the current era, which also requires expeditious completion of these transactions and benefit from those transactions, and due to the high rate of crimes as stealing and other crimes. The society has become in dire for the custody of its funds in order to realize two goals: the first is the security aspect, and the second is the speed of completing financial transactions, which is currently evident in the transfer between one account to another, the payment of bills, or the transfer of salaries.

The bank account is an account that is created in the bank by depositing money or bank deposits, and the bank account is subject to the process of withdrawing funds, which can be done whether by bank checks or bank cards (Debit, Credit Cards).

ًWhat are the types of bank accounts?

1- Current account:

It is the simplest type of bank account for most customers. It is the account where their salaries have been deposited and bills are paid through it, therefore it is an alternative to a pocket wallet that whenever they need money, they can get it quickly.

2- Savings accounts:

It is an account to deposit the money you want to accumulate and usually contains many benefits to encourage customers to leave their money in the account as long as possible and pays a lot of interest.

3- Capital market accounts:

It is a savings account with additional benefits, the interest rate is usually higher than a savings account, and some banks require a minimum deposit in this account.

4- Certificate deposits:

When you open a certificate of deposit with a bank, you agree to deposit the money for a specific period, and this period usually range from six months to five years, which can be longer or shorter.

Is it permissible to seize bank accounts?

Definitely, yes. It is unfair that the debtor refusing to pay his debts despite having sufficient funds in his bank account.

According to Article No. 325 of Civil and Commercial Procedure Law which stipulates that” Any creditor of a debt that exists at the time of payment may seize the movables or debts that his debtor owns from others, even if they are deferred or subject to a condition, the seizure covers every debt that arises from the debtor owed by the garnishee until the time of reporting what he owes unless he signed a debt himself”.

Furthermore, Article No.327 of Civil and Commercial Procedure Law stipulates that “If the creditor does not have an executive document or if his debt is not of a specified amount, it is not permissible to seize it except by order of the execution judge authorizing the seizure and estimating the debt of the seizing party at a temporary estimate based on a petition submitted by the person requesting the seizure, however, there is no need for this permission if the creditor has a judgment, even if it is not enforceable if the debt established by it is of a certain amount”.

What are the bank accounts confidentiality?

There is a huge difference between the confidentiality of bank accounts and secret bank accounts, whereas secret bank accounts are almost non-existent because everyone who has acquired money through illegal means hides behind these accounts.

However, the confidentiality of bank accounts means the data protection of the bank account’s owner from third parties, and in accordance with Article No. 140 of Central Bank and Banking System Law stipulates that “All customer data, accounts, deposits, trusts, and safe deposit boxes in banks, as well as transactions related to them, shall be confidential. It is not permissible to view them or give data about them, directly or indirectly, except with written permission from the owner of the account, deposit, trust, or treasury, or from one of his heirs, or from one of his legatees. With all or some of these funds, or from his legal representative or agent, or based on a judicial ruling or arbitration award”, without prejudice to the exceptions contained in this law, the prohibition stipulated in the first paragraph of this article applies to all persons and entities, including those authorized by law to have the authority to view or obtain papers or data whose confidentiality is prohibited in accordance with the provisions of this law, and this prohibition will remain in place until Even if the relationship between the customer and the bank ends for any reason”.

Egyptian bank accounts confidentiality

The CBE Law No. 194 of 2020 devoted chapter to the confidentiality of accounts in Chapter Nine in Articles 140/141/142/143.

Whereas, the aforesaid law states that all customer data and accounts, as well as their transactions, shall be confidential and cannot be accessed except with written permission from the account owner, one of his heirs, his legal representative, or pursuant to a judicial ruling or arbitration award. Additionally, the aforesaid law determined who have the right to reveal the confidentiality of the bank accounts and limit them to the General Attorney or the public prosecutors at least.

furthermore, anyone who receives customer information or data by virtue of his profession or job is prohibited from disclosing it or enabling others to access it, except in cases other than those authorized under the provisions of this law, the prohibition shall remain in force even after they leave work.

Who has the right to reveal the confidentiality of the bank accounts?

In accordance with Law No. 194 of 2020 promulgating the Central Bank and Banking System Law, it is not permissible to reveal the confidentiality of bank accounts except within the limits stipulated in Article No. 141” If it is necessary to reveal the truth in a felony or misdemeanor and there is serious evidence that it occurred, the Public Prosecutor or at least one of the first public attorneys whom he delegates may, on his own initiative or at the request of an official body or one of the concerned parties, request the Cairo Court of Appeal to order the inspection. Or obtain any data or information related to accounts, deposits, trusts, or safes stipulated in Article (140) of this law, or transactions related to them”.

Exceptions to bank accounts confidentiality

Whereas, Article No. 143 of Law No. 194 of 2020 outlines specific situations where disclosure of bank account information is permitted.

The provisions of Articles (140 and 142) of the aforesaid law does not prejudice the following:

  1. The duties legally assigned to bank auditors and the powers legally delegated to the Central Bank.
  2. The bank’s obligation to issue a statement of the reasons for refusing to cash the check or direct debit order based on the right holder’s request, or evidence of partial fulfillment of either of them in the event of insufficient balance.
  3. The right of the bank or entity granting credit or financing to disclose all or some of the data of the customer’s transactions which is necessary to initiate legal procedures, or to prove the right of the bank or the entity in any dispute that arises with the customer in regards to these transactions.
  4. Laws and provisions regulating combating money laundering and terrorist financing.
  5. The information and data provided by credit inquiry and rating companies in accordance with the rules determined by the Board of Directors.
  6. The competence of the Central Bank to exchange data and information with foreign counterparts in other countries, the Financial Stability Committee, and the Financial Supervision Authority.
  7. Access to the data and information which is necessary to prepare due diligence reports upon requesting a merger, acquisition, or division of a controlling percentage of the shares of any bank.
  8. The right of the Central Bank to defend itself in any judicial dispute or arbitration case, or to inform the Public Prosecution on the occasion of its exercise of its powers granted to it by law.
  9. Informing outsourcing service providers of customer data necessary to carry out the services entrusted to them.
  10. Bank employees, payment system operators, and payment service providers inform the Central Bank of the violations they discover as a result of their work, in accordance with the rules for reporting violations determined by the Board of Directors.