Financial Regulatory Authority

Decision of the Board of Directors of the Authority No. 36 of 2018

Dated 3/4/2018

Regarding the Voluntary Surrender of the License to Conduct Microfinance Activities for Associations and Civil Society Institutions

The Board of Directors of the Financial Regulatory Authority

After reviewing Law No. 10 of 2009 concerning the regulation of supervision over non-banking financial markets and instruments:

And Law No. 141 of 2014 concerning the regulation of microfinance activities:

And Law No. 70 of 2017 concerning the regulation of the work of associations and other institutions operating in the field of civil society work:

And Presidential Decree No. 192 of 2009 issuing the Statute of the Financial Regulatory Authority:

And Board of Directors Decision No. 159 of 2014 concerning the Statute of the Supervision Unit for Microfinance Activities of Associations and Civil Society Institutions:

And Board of Directors Decision No. 31 of 2015 concerning the rules and standards for conducting microfinance activities for associations and civil society institutions:

And the positions of the Board of Directors of the Authority in its session held on 3/4/2018:

Decided:

(Article One)

The controls and procedures stipulated in this Decision shall apply to associations and civil society institutions wishing to voluntarily surrender the license granted to them to conduct microfinance activities.

---

(Article Two)

Any association or civil society institution wishing to surrender the license granted to it to conduct microfinance activities must submit a request to the Supervision Unit for Microfinance Activities of Associations and Civil Society Institutions, according to the form prepared by the Unit for this purpose, after fulfilling the following conditions and documents:

1. Issuance of a resolution by the board of directors of the association or the board of trustees of the civil society institution.

2. Approval to surrender the license.

3. Submission of a statement indicating the date of the last installment disbursed to its clients.

4. Submission of a commitment to refrain from granting any future microfinance without obtaining a new license from the Authority.

5. Submission of a commitment from the legal representative of the association or civil society institution to amend its bylaws to cancel the conduct of microfinance activities.

If it is established that the balance of its existing microfinance portfolio equals zero, either as a result of settling previous loans, or writing off outstanding client balances in case of payment extensions exceeding 120 days, or transferring the portfolio to another entity directly licensed for microfinance activities with the Authority's approval, in accordance with the governing rules, accompanied by a certified statement from the association's or institution's auditor confirming the same.

(Article Three)

In cases where an association or civil society institution wishes to cancel its license to conduct microfinance activities, but has not previously conducted the activity, it must submit a request to the Supervision Unit for Microfinance Activities of Associations and Civil Society Institutions, according to the form prepared by the Unit for this purpose, after fulfilling the conditions and documents required in items (1, 2, 3, 4) of Article Two of this Decision, and submitting a declaration from the legal representative confirming that it has not granted any microfinance since the issuance of Law No. 141 of 2014.

---

(Article Four)

The Supervision Unit for Microfinance Activities of Associations and Civil Society Institutions shall review the request for voluntary license cancellation, and must rule on the request within fifteen days from the date of its submission, provided it is complete with data and documents, and hand over the original license certificate to the Authority and prevent the association or civil society institution from paying any subsequent amounts that may be due to the Authority (if any exist).

The association or civil society institution, as well as the Egyptian Microfinance Union, shall be notified of the license cancellation decision within two days from the date of its issuance.

(Article Five)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors
Dr. Mohamed Omran