Financial Regulatory Authority Board Decision No. 206 of 2021

20 Official Gazette - No. 9 dated 11 January 2022

General Authority for Financial Regulation Board Decision No. 206 of 2021 dated 31/12/2021 Amending the Authority's Board Decisions No. 53 of 2018 regarding licensing issuance and renewal conditions and share ownership rules for companies operating in non-banking financial activities, and No. 56 of 2020 regarding establishment and licensing conditions for consumer financing activity and licensing conditions for consumer financing providers.

The Board of the General Authority for Financial Regulation, Having reviewed the Anti-Money Laundering Law issued by Law No. 80 of 2002 and its Executive Regulations; And the Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And the Authority's Board Decision No. 53 of 2018 regarding licensing issuance and renewal conditions and share ownership rules for companies operating in non-banking financial activities; And the Authority's Board Decision No. 56 of 2020 regarding establishment and licensing conditions for consumer financing activity and licensing conditions for consumer financing providers; And the Authority's Board Decision No. 164 of 2020 regarding licensing rules and procedures for companies wishing to operate in financing medium, small enterprises, and companies wishing to operate in micro-financing activities; And after the approval of the Authority's Board at its meeting held on 21/12/2021;

---

21 Official Gazette - No. 9 dated 11 January 2022

Determined:
( Article One )
New clauses numbered (9, 10) are added to Article Four and clause (6) is added to Article Eight of the aforementioned Authority's Board Decision No. (53) of 2018, with their texts as follows:
( Article Four - Clauses 9, 10 ):
Without prejudice to the establishment or licensing requirements required under the laws governing each activity, companies wishing to obtain preliminary approval for establishment or a license to operate one of the non-banking financial activities must comply with the following:
..................................................
9- Completing the disclosure form prepared by the Authority regarding verification of the fund sources of the company's founders and its principal shareholders. 10- None of the company's founders, principal shareholders, ultimate beneficiaries, or board members shall be listed in local or international sanctions lists. ( Article Eight - Clause "6" ):
The following considerations shall be taken into account when ruling on applications for the Authority's approval of ownership:
6- Compliance with Clauses (9, 10) stipulated in Article Four of this Decision regarding the ownership applicant (principal shareholder) and the ultimate beneficiary. ( Article Two ) A new clause numbered (8) is added to Article Four of the aforementioned Authority's Board Decision No. 56 of 2020, with its text as follows:
( Article Four - Clause "8" ):
Consumer financing providers whose main activity is the distribution or sale of financed goods must obtain a license from the Authority when their provided financing volume is no less than twenty-five million Egyptian pounds according to the latest approved financial statements, in addition to the following conditions:
..................................................
8- The executive director of the consumer financing activity at the company shall not be listed in local or international sanctions lists.

( Article Three )
This Decision shall be published in the Official Gazette, and on the Authority's electronic website and the Egyptian Exchange, and shall be effective from the day following its publication in the Official Gazette.

Chairman of the Board
Dr. Mohamed Omran