Egypt’s FRA consolidates consumer-finance rules in new guide

The Financial Regulatory Authority issued Egypt’s first comprehensive guide for consumer-finance companies on 5 September 2026, consolidating existing rules and adding operational requirements.

The guide is based on Law No. 18 of 2020, executive board decisions and official circulars issued to date. It applies to existing and newly registered consumer-finance companies, but the source does not specify a separate commencement date or transition period.

A consolidated compliance framework

The guide brings together licensing, incorporation and ongoing operating requirements. It covers capital thresholds, shareholder structures, board composition, key executive roles, committees, internal controls, solvency, financial statements, standard financing contracts and branch registration.

The consolidation does not mean every provision is new. The FRA presents the guide as a single reference for obligations across the sector and as a practical benchmark for internal audits. The source does not specify a new filing form, reporting timetable or implementation window.

Consumer-facing controls require companies to present repayment schedules, total costs, fees, benefits and associated risks in marketing, advertising and disclosure materials. The rules also prohibit firms from taking blank signed documents or trust receipts as collateral.

The guide covers anti-money laundering and counter-terrorist financing controls, customer due diligence, suspicious-transaction reporting, record keeping and credit-bureau reporting. It also addresses borrower creditworthiness, existing facilities, non-performing loans, use of funds and digital credit-scoring systems based on financial standing and verifiable repayment capacity.

For financial soundness, the guide incorporates Basel III requirements covering capital adequacy, leverage and liquidity ratios, provisioning, concentration risk, stress testing and periodic reporting. It also sets requirements for standard contracts and the registration of branches.

Technology, collections and insurance

Licensees must maintain IT infrastructure and information systems, establish governance for IT risk and cybersecurity, and conduct routine penetration testing. Compliance with those technology requirements is a mandatory condition for maintaining a licence.

The guide establishes a registry for third-party collection agencies across non-bank financial activities. Consumer-finance providers must disclose contracted collectors to clients, verify their identities, maintain official communication channels, address grievances and take corrective measures where necessary.

Providers must also maintain life and permanent total disability insurance for borrowers up to age 65, with coverage matching the outstanding balance. The guide sets procedures for cash advances, controls against unauthorised loan monetisation and administrative penalties for non-compliance.

FRA Chairman Islam Azzam said the Authority would monitor compliance across the customer relationship, from advertising and fee disclosure through credit assessment, contract execution, loan administration and client-data protection. He said the FRA would take corrective or enforcement measures for violations under the law.

Those comments describe the Authority’s supervisory approach. The release does not identify a specific investigation, penalty or affected firm, and it does not set a commencement date or transition requirement.

The next official record to monitor is any FRA guidance or implementation clarification addressing how firms should apply the consolidated requirements.