Home | News    Thursday 10 April 2014

Egypt’s central bank bans dealings with Sudanese banks: report

separation
increase
decrease
separation
separation

April 9, 2014 (KHARTOUM) – Egyptian banks are refusing to receive wire transfers from Sudanese and Libyan companies in line with instructions issued by the Central Bank of Egypt (CBoE).

JPEG - 14.7 kb
The headquarters of the Central Bank of Egypt in the capital, Cairo (Photo: Reuters/Amr Abdallah Dalsh)

The CBoE decided to ban banking transactions with several Arab and African countries, including Qatar, Libya, Syria and Sudan, saying those countries are not committed to implementing anti-money laundering laws.

It also said there are suspicions that there are money transfers from those countries to civil and rights organisations inside Egypt and are being misused.

According to Egypt’s Al Youm Al Sabi’ daily newspaper, the Egyptian Chemical and Fertiliser Exports Council (CFEC) ,which is headed by Waleed Hilal, received complaints from several companies in the sector, saying they were negatively affected by the decision to ban banking transactions with those countries.

In a press statement on Wednesday, Hilal said that the companies are facing problems in receiving their dues from clients in some Arab countries due to CBoE instructions.

He disclosed that the Arab Bank (AB) refused to receive a wire transfer from a Sudanese company to an Egyptian company operating in his sector, saying the same company made the transfer from its account in Abu Dhabi in the UAE to the National Societe Generale Bank (NSGB), but the latter also refused to receive it.

Last January, the governor of the Central Bank of Sudan (CBoS), Mohamed Ali Al-Sheikh, acknowledged a lack of transparency in reporting money laundering cases in the country.

He described Sudan’s rating of compliance with the standards of the Financial Action Task Force (FATF) as unsatisfactory and added they are concerned about Sudan’s current standing, saying that it would expose the country to greater risks.

The FATF is an intergovernmental organisation founded in 1989 to develop policies to combat money laundering and terrorism financing.

He acknowledged that combat operations within all institution in the country are “weak and slow”, calling upon compliance officials to put more efforts into identifying risks within financial institutions besides implementing the FATF 40 recommendations on money laundering and terrorism financing.

In February, the Sudanese government acknowledged reports that a number of Saudi and European banks took a decision to stop dealing with Sudanese banks and attributed it to pressure by the United States.

But the CBoS issued a statement, saying that the move was driven by routine banking procedures undertaken by the financial institutions.

There was no comment from Saudi Arabian Monetary Agency (SAMA) and it is not clear if the latter issued the directive or if it was decision by individual banks.

A Western diplomat told Agence France Presse (AFP) over the weekend that the move by the European banks appears to reflect an increasingly cautious attitude by financial institutions which do not want to risk being found in violation of US sanctions.

For Saudi Arabia, strained political relations over Sudan’s links to Iran could be a factor in the banks’ decision, the Western diplomat said.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article


 
 

The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Doubts remain over South Sudan peace talks 2015-03-04 21:22:01 By John A. Akec News of a possible end to South Sudan’s 11-month-old conflict was received with guarded optimism at the start of February, and there were good reasons for this. On January 21, (...)

What do we expect from the final South Sudan Peace Talks? 2015-02-27 08:41:32 By Luka Biong Deng As the alleged final and last round of peace talks on South Sudan commenced in Addis Ababa, the people of South Sudan attach little hope and expect nothing as they have been (...)

The Berlin Meeting: What’s at stake? 2015-02-25 11:33:06 By the Sudan Democracy First Group (SDFG) Between 25 and 27 February, Berlin will become the hub for the Sudanese unarmed and armed opposition, invited by the German Foreign Ministry and the (...)


MORE








Latest Press Releases


Archbishop Taban calls for reconciliation and forgiveness 2015-02-23 09:30:38 February 2015 Greetings from Peace Village, Kuron. It is really a Peace Village. I had my peaceful Christmas and a Prosperous New Year in Kuron. God really blessed the area with Peace. You can (...)

WFP appreciates US additional support for S. Sudan’s hungry 2015-02-19 08:20:15 17 February 2015 (JUBA)- The United Nations World Food Programme (WFP) has welcomed a contribution of US$165.5 million from the United States Agency for International Development (USAID) to feed (...)

Press Release from the SPLM/A (IO) in Uganda 2015-02-11 09:39:09 February 10, 2015 1. The office of the SPLM/A (IO) and the presence of its diplomatic representation that was established under the Kampala outcome of the 21st August 2014 is operational and has (...)


MORE

Copyright © 2003-2015 SudanTribune - All rights reserved.