Regulatory Alerts2019-01-01
Circular Letter No. (2) of 2019 Regarding the Regulation of the Use of Non-Cash Payment Means in Completing Financial Transactions for Non-Banking Financial Institutions
The Financial Regulatory Authority (FRA) of Egypt issued Circular Letter No. 2 of 2019 to mandate non-banking financial institutions and their counterparties to transition to non-cash payment methods for specified financial transactions in compliance with Law No. 18 of 2019. The directive defines non-cash payment means and bank accounts, explicitly requiring the non-cash settlement of financing grants, supplier payables, dividends, insurance payouts, and real estate transactions, while mandating the non-cash collection of installments, insurance premiums, and fines. To ensure regulatory compliance and avoid penalties, the FRA outlines a six-phase implementation roadmap for affected entities to contract with payment service providers, conduct pilot testing, and fully operationalize non-cash transactions within six months of the law's executive regulations taking effect.