Egyptian Financial Regulatory Authority

Board of Directors Decision No. 87 of 2019

Dated 16/7/2019

Regarding the Rules and Regulations for Licensed Companies, Associations, and Civil Society Institutions Engaging in Microfinance Activities as Payment Service Providers Using Prepaid Cards

Board of Directors of the Egyptian Financial Regulatory Authority

Having reviewed the Central Bank, Banking, and Currency Law No. 88 of 2003; and Law No. 10 of 2009 regulating supervision over non-Egyptian financial markets and instruments; and Law No. 141 of 2014 regulating microfinance activities; and Presidential Decree No. 192 of 2009 issuing the Statute of the Egyptian Financial Regulatory Authority; and Board Decision No. 158 of 2014 regarding microfinance activity areas and values; and Board Decision No. 173 of 2014 regarding rules and regulations for companies engaging in microfinance activities and its amendments; and Board Decision No. 31 of 2015 regarding rules and regulations for associations and civil society institutions engaging in microfinance activities and its amendments; and the approval of the Board of Trustees of the Microfinance Supervision Unit for Associations and Civil Society Institutions; and the approval of the Board of Directors in its session held on 16/7/2019;

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PROVISIONS

(Article One)

Licensed companies, associations, and civil society institutions engaged in microfinance activities may provide prepaid card payment services to their clients in microfinance activities through one or more of the following operations, on behalf of banks registered with the Central Bank of Egypt:

1. Identifying and verifying the identity of the card applicant in accordance with the customer due diligence procedures issued by the Anti-Money Laundering and Combating the Financing of Terrorism Unit.

2. Receiving and registering the results of card issuance requests or any other requests related to the service.

3. Providing awareness and guidance information on card usage.

4. Obtaining cash (Egyptian Pounds) from card users within the limit of the service provider company's, association's, or institution's balance at the bank.

5. Delivering cash (Egyptian Pounds) to the card user in exchange for a deduction from the card balance.

(Article Two)

Companies, associations, and civil society institutions wishing to obtain approval from the Authority or the Unit, as applicable, to provide prepaid card payment services, shall submit an application to the Authority or the Unit using the form prepared for this purpose.

The Authority or the Unit, as applicable, shall review and examine the application and ensure it meets the requirements. A decision on the application shall be issued within a maximum of five working days, with approval granted upon verifying the following:

1. Commitment to submit the required annual and periodic financial statements within their deadlines, accompanied by an audit report from an auditor certified by the Authority and registered with the Microfinance Activity Auditors.

(Article Three)

Companies, associations, and civil society institutions approved by the Authority or the Unit, as applicable, shall submit a copy of the contract concluded between them and the bank governing their business relationship regarding the provision of services to the clients of those entities immediately upon signing the contract.

(Article Four)

Companies, associations, and civil society institutions approved by the Authority or the Unit as prepaid card payment service providers shall comply with the following regulations:

1. Providing the Authority or the Unit with any data or reports concerning the service provider's transactions with its prepaid card clients upon request.

2. Retaining data and reports related to the service provider's prepaid card operations system in accordance with the reporting system issued by the contracted bank, and in accordance with the regulations governing client files as outlined in the rules and regulations for conducting the activity issued by the Board of Directors, for a period of at least one year from the date of termination of dealings or until a final judgment is issued in any litigation related to these documents.

3. Notifying the Authority or the Unit of any amendments to the contract concluded with the bank within fifteen days from the date of amendment.

(Article Five)

Microfinance entities are obligated to pay a fee for the examination and review services of the application for approval as a prepaid card payment service provider, amounting to five thousand Egyptian Pounds for companies and three thousand Egyptian Pounds for associations or civil society institutions.

(Article Six)

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

Chairman of the Board of Directors Egyptian Financial Regulatory Authority Dr. Mohamed Omran