Regulatory Alerts2019-01-01
Circular Letter No. 49 of 2019 Regarding Factoring Activity Regulations
The Authority's Deputy Chairman issued Circular Letter No. 49 of 2019 to establish regulatory requirements for factoring activities under Law No. 176 of 2018 and related executive decisions. The circular mandates that sellers must notify debtors of assigned financial rights transfers in non-recourse factoring arrangements, while permitting factors to finance sellers against debtor receivables with explicit recourse rights and optional notification provisions. Additionally, the transfer of fixed financial rights secured by commercial instruments such as checks and promissory notes shall strictly follow the circulation rules outlined in the Commercial Law.
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