Regulatory Alerts2018-01-01
Board of Directors Decision No. 121 of 2018 Regarding the Conditions and Procedures for Licensing Companies Engaging in Microfinance Activities
The Egyptian Financial Regulatory Authority issued Decision No. 121 of 2018 to establish the licensing conditions and procedures for companies seeking to operate in Egypt's microfinance sector. The regulation mandates that applicants be Egyptian joint stock companies with majority legal entity ownership, a minimum 15 million EGP issued capital, and qualified leadership, while requiring comprehensive documentation, field verification, and adherence to strict operational and compliance standards. It further stipulates a 1% licensing fee capped at 100,000 EGP, quarterly supervision fees based on client financing balances, and prior regulatory approval for any single or affiliated party acquiring 50% or more of the company's capital.
Share