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Usage Method of The Non-Cash Payments Law (Law No.18) Year 2019

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Comprehensive Legal Summary

In light of the steps taken by the state to develop its internal system and moving towards automating the systems starting from the issuance of the non-cash payments law and electronic collection in 2018.

It was from the necessity of taking steps that complement this law as issuing law No. 18 of 2019.

Regulate the use of non-cash payment methods that represents one of the most important governmental steps towards electronic payment for the public and reducing cash circulation.

And schedule to require government agencies to make electronic payment devices available in accordance with the law.

Usage of the non-cash payments’ methods law, no.18 the year 2019 issued 16 of April 2019, to take effect from the day after.

The articles and provisions of this law included several aspects and basic articles, including definitions related to this law, determining the obligors, use the type of payments for non-cash payment, fines for non-obligors, etc., explained as follows:


The law has defined some necessary definitions for it with examples being set for it, it defined the non-cash payment method such as performance orders, credit cards, debit, and payment using a mobile phone.

And also defined the bank account such as the current account and the accounts associated with credit cards and prepaid cards.

And also defined cash financing as finance provided by the banks, mortgage companies, financial leasing, factoring, microfinance/microenterprise companies or associations, or any other authorized to work in these fields.

The law has defined these definitions because of their importance and relevance to the interpretation and understanding of this law.


The law defines those who adhere to this law, which are all national establishments/state institutions, the companies that the state owns all or a majority of its capital, Private Companies, and establishments of various kinds.


The mentioned law and the long-range patrol book No. 2 the year 2019 issued by the Financial Regulatory Authority that explains this law specifies the scope of commitment to non-cash payment methods in financial transactions and obliges companies and entities subject to the authority’s control and supervision with two things.

The first of which is the payment of their payments – by non-cash payment methods – whenever their value exceeds the limits.

That the executive regulations of the law indicate when granting cash financing, which is the financing provided by real estate finance companies, financial leasing, or factoring, or the microfinance companies and societies, or any non-bank financial body.

Distribution of profit resulting from the contribution to the capital of companies or investment funds.

Dues of syndicate members, private insurance funds’ members and insurance compensation, the disbursement of subsidies and donations through charities and national institutions.

Dues against purchases, rent, exploitation, use of land or mortgage or express transport vehicles, and finally when paying the dues of its employees, experts, chairmen and members of boards of directors and committees, and social insurance contributions.

Whenever the number of employees in it or the total value of their monthly wages exceeds the limits set by the executive regulations of this law.


The law requires recipients of non-cash payment from legal authorities, bodies, and companies to provide non-cash payment methods without any additional costs.


The law defines sanctions whenever this law violates and divide into two penalties.

The first penalty is the imposition of a sanction if one of the bodies, legal persons, or other persons entrusted with the obligation to implement non-cash payment in the aspects of the said payments.

Punished with a sanction of not less than 2% of the value of the amount paid in cash and does not exceed 10% of its value and a maximum of one million Egyptian pounds.

The second penalty is the imposition of a sanction if the recipients of non-cash payment do not commit to providing the means of payment without any additional costs.

Then penalize with a sanction of no less than 100 thousand Egyptian pounds and not exceeding 300 thousand Egyptian pounds of its value, and sanctions duplicate in case of repetition.

Without prejudice to the criminal responsibility of natural persons, legal persons – Companies – have joint liability for the fulfillment of compensation and financial penalties.


The law and the describing periodic book issued by the Financial Regulatory Authority specify that the period of satisfaction of conditions takes six months from the date of the implementation of the executive regulations of Law No. 18 of 2019.

The plan for the agreement of conditions includes several stages.

The Non-Cash Payments Stages

– The first stage includes the beginning of consultations and contract the selection of providers of non-cash payment services to implement payment and receipts in the event that the clients with the entity do not have existing bank accounts or other non-cash payment methods such as credit and debit cards, and payment using a mobile phone, And prepaid cards.

– Then followed by the transition to the contracting stage with non-cash payment service providers.

– And obtaining the prior approval of the authority that requires only for the entities that authorize to practice the microfinance activity in regard to activating non-cash payment transactions for their clients.

-The third stage comes which witnesses the trial operation of all non-cash payment services and the start of an awareness plan for clients and stakeholders.

– Then the fourth stage and starting the implementation of non-cash collection operations for the entity’s payments.

– For the fifth stage to witness the commencement of payments / non-cash disbursements for the entity’s payments.

– And finally, the complete agreement to complete all payments (payment and collection) by means of non-cash payment and to address all obstacles.

– Last but not least, this law is an important and necessary step towards the progress of the entire system of government in all effective sectors with regard to machinery, automating, and reducing the use of cash at all times.


So the system becomes valid for work in stable times as well as in the crises that the country is going through at our current time.

With the need to mention that this legal analysis continued by the issuance of the awaited and complementing executive regulations of this law.