Laws relating to the Central Bank of Egypt give financial entities working in the banking sector the right not to credit donations to the accounts of charities and social organizations unless they have up-to-date licenses with the Ministry of Social Solidarity, said Hesham Ezz al-Arab, chairman and managing director of the Commercial International Bank (CIB), on Tuesday.
The CIB is committed to its slogan “Know Your Customer”, and the international rules on money laundering are also applicable to bodies and civil society organizations that take donations for political, social or charity work, Ezz al-Arab said.
“It’s the bank’s right to contact the client, individuals or companies, to inquire about the nature of funds received in the natural course of the organization's activity,” he said.
The bank has the legal right to demand a copy of the documents and papers to make sure of the transaction and its source, the CIB Chairman said, adding that the CIB does not credit any donations to an organization’s account unless it has a current license with the ministry.
Human rights groups and NGOs have accused HSBC bank of colluding in a campaign of intimidation against them, which they say is being waged by Egypt’s ruling military council, according to a report in The Independent newspaper on Monday.
HSBC is not the only target of criticism by activists. Another bank, the Egyptian-owned CIB, has also been accused of intimidation, according to the report.
According to United Group, a firm of Cairo lawyers specializing in human rights, CIB recently contacted lawyers to ask why the firm’s partners had received money from USAID, the US governmental organization that distributes development cash.
“They asked us to send them copies of the contract we signed with USAID,” the paper quoted Nigad al-Boraa, a senior partner at the firm, as saying.
“I told them we were a law office and USAID are one of our clients, and that by legal profession laws we cannot deliver any information to a third party without the consent of our client.”
Following CIB’s inquiry, the bank closed Mr al-Boraa’s personal account, along with his sister’s. United Group’s company account was also subsequently closed.
Translated from the Arabic Edition
