| The Road to a Cashless Economy
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| | Sharkawy & Sarhan Newsletter Issue 118, 25 November 2020 |
| In the context of promoting digital financial inclusion in Egypt and to move away from a cash based society, Law 18/ 2019 regulating the use of payments through cashless payment methods (the “Law”) was issued, followed by its executive regulation 1776/ 2020 issued by decree of the Prime Minister (the “ER”).
The Law makes it mandatory for most Egyptian businesses to settle certain payments by non-cash means, if they exceed a certain threshold. Deadline for compliance is 7 March 2021.
The Law is set to achieve several key goals, in particular, promoting financial inclusion and developing financial services whilst eliminating financial crimes, such as fraud.
The Law defines a cashless payment broadly and includes “any payment method that results in an addition to the beneficiary’s bank account such as deposits, transfers, credit and debit cards, payment via mobile telephones, and any other payment method approved by the governor of the Central Bank of Egypt (“CBE”)”.
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