Regulatory Alerts2014-01-01
Board of Directors Decision No. (172) of 2014 Regarding the Conditions, Rules, and Procedures for Licensing Companies to Operate in the Microfinance Activity
The Egyptian Financial Supervisory Authority issued Decision No. 172 of 2014 to establish the comprehensive licensing framework for companies operating in the microfinance sector. The regulation mandates that applicants must be Egyptian joint stock companies, secure temporary licensing with at least 25% paid-up capital, and complete full administrative, IT, and organizational compliance within six months to obtain a final license. It further stipulates a 1% licensing fee capped at 100,000 Egyptian pounds, quarterly supervision fees based on client financing balances, strict ownership limits requiring authority approval for stakes of 50% or more, and specific regularization procedures for existing entities transitioning under the new microfinance law.