الهيئة العامة للرقابة المالية

• The decision applies to all stakeholders, including sellers, service providers, brokers, customers and companies’ employees.
• All direct and future dealings with any party proven to have engaged in illegal activities are strictly prohibited. Legal proceedings will be initiated against the offending party.
• Companies shall exclude any individual from their vendor and service provider networks who is proven to have illegally converted consumer loans into cash.
• Consumer finance companies shall pursue legal action against any employee proven to have helped convert consumers’ loans into cash.
• Consumer finance companies shall notify the Federation of all incidents of loan liquidation, including a list of the individuals involved and all supporting documentation.
• The Consumer Finance Federation shall create an electronic link with the Authority to share all available data and information on such incidents.
• To safeguard stakeholders and stabilize the market, all verified instances of customers converting loans into cash must be reported to credit reporting agencies.
• The Federation shall compile a list of all violations and incidents and share it with companies and service providers.

In a move to protect market integrity, FRA has issued a resolution compelling the Egyptian Federation of Consumer Finance to create a blacklist of individuals and entities who have engaged in loans liquidation.

The new regulations apply to everyone in the consumer finance sector, from vendors and brokers to customers and company employees.

The resolution mandates that consumer finance companies immediately terminate all dealings with any individual or entity proven to have engaged in the illegal conversion of loans into cash. These offenders must also be permanently excluded from the network of vendors and service providers.

The Authority now requires consumer finance companies to pursue legal action against any employee proven to have participated in the illegal conversion of loans into cash. Companies must also report the names of those involved to the Federation, along with all supporting documents.

Additionally, the resolution includes a provision for the Consumer Finance Federation to establish an electronic link with the Authority. This measure is intended to provide the Authority with all available data and information on such incidents, thereby enhancing the efficiency of market monitoring and supervision.

In this context, the Authority stressed the importance of notifying credit reporting agencies with the details of customers proven to have participated in loan liquidation. This is to ensure the protection of market participants, promote transparency and enhance market stability.

The Federation is required to compile and maintain a periodic list of violations and incidents, which will be made available to its members. The list will be continuously updated with data from consumer finance companies and providers, ensuring a clear mechanism to deter harmful practices and promote discipline. Notably, an individual will be removed from the blacklist once they resolve their outstanding issues.

FRA affirms that this measure is part of its comprehensive strategy to enhance stability in non-banking financial markets, protect the rights of participants and ensure that consumer finance is used for its intended purposes.