Regulatory Alerts2018-01-01
Board of Directors Decision No. (3) of 2018
The Financial Regulatory Authority (FRA) issued Board of Directors Decision No. (3) of 2018 to amend Decision No. (173) of 2014 by introducing new regulations governing the use of electronic payment systems by microfinance companies for financing disbursement and collection. The decision mandates that companies obtain prior FRA approval by submitting a standardized application demonstrating compliance with periodic reporting, valid contracts with payment service providers, Central Bank of Egypt approvals, simplified consumer guidance materials, and payment of inspection fees. Approved companies must secure explicit prior client consent, maintain secure transaction records for at least one year post-termination, submit quarterly usage reports, and obtain FRA approval for any contract amendments, with the Authority reserving the right to revoke approval for non-compliance.