The Central Bank of Egypt (CBE) has mandated banks operating in the Egyptian market to establish dedicated anti-fraud departments, which will report directly to the Chief Risk Officer and submit regular reports to the Board Risk Committee.
In a circular issued to banks, the CBE said the move forms part of its broader efforts to safeguard the stability and soundness of the banking sector, amid rising fraud risks driven by rapid technological advancements and the growing reliance on electronic transactions and digital financial services. The measure also aims to strengthen the central bank’s supervisory role and enhance banks’ capabilities to detect, prevent, and mitigate various forms of fraud.
The CBE has granted banks a six-month deadline to comply with the new requirements.
According to the circular, the anti-fraud function will be responsible for developing policies and control frameworks, conducting technical investigations into both internal and external fraud cases, and monitoring fraudulent activities across all banking operations and digital products. Responsibilities also include verifying the integrity of documentation related to retail, corporate, and SME banking, as well as examining counterfeit currency.
The minimum operational framework requires banks to formulate a comprehensive anti-fraud strategy and policy, subject to approval by the Board of Directors, and to conduct independent and objective fraud risk assessments across all banking processes. Banks must also ensure the effectiveness of internal controls through regular reviews of policies and procedures, alongside the establishment of continuous monitoring mechanisms across all operations and products, in line with applicable laws and regulations.
The framework extends to combating fraud within digital payment systems by monitoring customer and merchant activity, including onboarding processes. This covers continuous oversight of card transactions and payment acceptance channels such as point-of-sale (POS) terminals, e-wallets, e-commerce platforms, and other digital services.
Banks are also required to receive and investigate reports of both internal and external fraud cases, including legacy incidents and those identified during ongoing operations, in coordination with relevant departments. The anti-fraud unit will lead technical investigations into internal fraud cases, after which other competent departments will act based on its findings.
In addition, the department will be tasked with examining counterfeit banknotes, preparing detailed reports for each fraud case, and maintaining a comprehensive database that includes corrective action plans to prevent recurrence. It must also ensure that third-party service providers comply with anti-fraud policies, with such obligations explicitly incorporated into contractual agreements.
The mandate further includes the creation of internal watchlists of individuals and entities involved in fraudulent activities—ranging from customers and companies to suppliers and employees—under a governance framework that ensures objectivity, proper vetting, and controlled use of such data.
The new framework also seeks to strengthen coordination between the anti-fraud function and other key departments, including internal audit, compliance, information security, and legal.
Moreover, the CBE has instructed banks to implement regular awareness programmes for employees—including new hires and outsourced staff—as well as customer awareness campaigns aimed at educating the public on common fraud schemes and prevention methods.
On the human resources front, banks must obtain prior CBE approval before appointing a head of anti-fraud to ensure the candidate meets the required standards of competence and professional suitability. They are also required to submit details of existing anti-fraud officers for registration with the central bank.
Finally, the CBE emphasised the importance of the immediate reporting of fraud cases through the designated system of its Central Anti-Fraud and Financial Crimes Department, or any updated reporting channels introduced in the future.
