الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

• Regulated entities must complete technical and operational integrations within a maximum of two months.
• Upgraded authentication mechanisms bolster FRA’s and companies’ ability to detect fraudulent practices and protect market participants.

Dr. Islam Azzam, FRA Chairman has issued Decree mandating all licensed consumer finance companies and micro, small and medium enterprise (MSME) financing entities to implement Decision No. 133 of 2026 within two months. Issued last July, the regulation requires sending a One-Time Password (OTP) to clients upon executing and utilizing financing agreements, as well as maintaining audit records of these verification codes.

The decision, published in the Egyptian Gazette under No. 2735 of 2026 and uploaded to FRA’s official website, aligns with the Authority’s commitment to accelerate regulatory compliance and tighten identity verification procedures across consumer and MSME financing activities.

Under the new decision, all financial institutions—including consumer finance firms, MSME financing companies, associations and non-profit institutions—must complete the necessary technical and organizational infrastructure to implement OTP verification within a maximum window of two months.

The regulatory framework mandates sending an OTP to the verified mobile number registered to each client at the time of contract execution and upon fund disbursement, requiring institutions to maintain a verifiable record of the OTP transaction.

Dr. Islam Azzam emphasized that integrating OTP technology into the customer identification process enables early detection of market abuses and fraud during consumer or commercial loan originations. He noted that the measure combats identity theft and the submission of false personal data, safeguarding bona fide borrowers and preserving their creditworthiness.

FRA Chairman emphasized that current regulations require all regulated entities leveraging FinTech, alongside their outsourcing partners, to authenticate customer identities against national ID and mobile ownership records. Institutions are also required to conduct real-time AML and asset-freeze sanctions screening under Board Decision No. 186 of 2024 and Decision No. 133 of 2026.