الهيئة العامة للرقابة المالية

FRA and IFC Partner to Boost Sustainability and  Corporate Governance – Wednesday 4 November 2026

• An Agreement to Develop an ESG Assessment Framework in the Non-Banking Financial Sector… and Another to Support the Egyptian Institute of Directors with Specialized Educational Materials

Dr. Islam Azzam, FRA Chairman witnessed the signing ceremony of two agreements between the Authority and the International Finance Corporation (IFC), a member of the World Bank Group. The agreements cover environmental, social and corporate governance (ESG), sustainability and corporate governance.

This comes as part of the Authority’s continuous efforts to develop regulatory frameworks and institutional practices, as well as to promote the application of governance and sustainability principles across non-banking financial institutions.

Dr. Tarek Seif, FRA Vice Chairman, on behalf of FRA, and Dr. Amira El-Saeed Agag, IFC Governance Projects Manager in Egypt signed the agreements.

The first agreement stipulates that the IFC will provide advisory and technical services to FRA to strengthen sustainability and ESG framework. This includes designing an ESG Scorecard to evaluate corporate sustainability performance, establishing core indicators and technical standards, and reviewing the Authority’s new sustainability reporting framework to provide technical feedback.

The partnership also includes drafting a preliminary framework outlining the proposed roles and responsibilities for Sustainability Officers within institutions, aligned with international best practices. Additionally, the IFC will organize specialized workshops to train FRA staff on International Sustainability Disclosure Standards (IFRS S1) and Climate-related Disclosures (IFRS S2), strengthening their technical capacity to oversee disclosure requirements and evaluate corporate sustainability practices.

The second agreement, signed between the Egyptian Institute of Directors (EIoD)— FRA’s training arm—and the IFC, grants the Institute a three-year license to utilize and adapt specialized IFC corporate governance materials across its certified training programs.

These educational resources cover four specialized programs and manuals: Sustainability Training for Board Members, Board Member Certification Program, Board Secretaries Manual and Internal Control Environment Manual. The materials focus on developing corporate governance practices, identifying actions required to improve governance frameworks, clarifying the roles and responsibilities of board secretaries and enhancing knowledge of internal control systems, risk management, internal audit and compliance.

Dr. Islam Azzam, FRA Chairman emphasized that ongoing cooperation with international organizations in sustainability and governance reflects the Authority’s commitment to develop the sectors under its supervision. He noted that this approach pairs regulatory enhancement with the technical tools needed for implementation, while simultaneously building the capacity of professionals responsible for execution within institutions.

He added that sustainability agreement with the IFC outlines specific technical deliverables, including the development of a corporate ESG scorecard, a review of sustainability reporting framework, and support in defining standard roles for sustainability officers. These measures aim to strengthen performance monitoring across institutions while elevating the quality and transparency of ESG disclosures.

Dr. Islam Azzam also noted that providing specialized educational materials to the Egyptian Institute of Directors will support the development of its professional programs and broaden the scope of training topics. These will encompass qualifying board members, sustainability governance, roles of board secretaries, internal control systems, risk management and compliance.

For his part, Dr. Tarek Seif, FRA Vice Chairman highlighted that establishing standard roles and responsibilities for Sustainability Officers is a cornerstone of this collaboration. He noted that this function is critical for managing institutional sustainability portfolios, streamlining data collection and reporting and embedding sustainability into operational workflows and executive decision-making. Furthermore, training FRA personnel on IFRS S1 and IFRS S2 standards equips regulatory staff to effectively oversee climate and sustainability disclosures.

Regarding the collaboration with the Egyptian Institute of Directors (EIoD), FRA Vice Chairman noted that training outcomes undergo continuous evaluation using key performance indicators (KPIs). These metrics track enrollment figures, participant satisfaction rates, and institutional implementation of program recommendations—allowing the Authority to evaluate training impact and refine course content continuously.

FRA Directs Non-Banking Financial Institutions to Update KYC and Identity Verification Forms – Tuesday 3 November 2026

Dr. Islam Azzam – FRA Chairman:

Updated Forms Expand Coverage to All Client Categories, Guaranteeing Accessibility for People of Determination, Senior Citizens and Illiterate Individuals – in strict compliance with due diligence requirements.

Dr. Islam Azzam, FRA Chairman issued a circular mandating all entities operating in the non-banking financial sector to update their KYC and Identity Verification forms in light of the updated edition of the “Customer Due Diligence Procedures for Financial Institutions Subject to FRA Supervision,” issued by the Money Laundering and Terrorist Financing Combating Unit in September.

Under the new circular, financial institutions must specifically accommodate vulnerable customer groups—primarily People of Determination (persons with disabilities), illiterate clients and senior citizens—when designing updated Know-Your-Customer (KYC) and Ultimate Beneficial Owner (UBO) verification forms. This step ensures seamless accessibility for all segments of society.

The directive underscores FRA’s commitment to ensure that regulated entities continuously update their policy manuals, internal procedures and control systems.

Circular No. 8 of 2026 requires all regulated entities to implement the EMLCU’s updated due diligence standards across all product and service application forms. Approved copies of these updated policy manuals and internal control frameworks must be submitted alongside each institution’s annual AML/CFT activity report for the fiscal year 2026, with a final submission deadline of January 31, 2027.

Dr. Islam Azzam stated that the new circular aims to accelerate compliance with national AML/CFT developments, streamline customer transactions, broaden regulatory scope to cover all client demographics, verify data authenticity and strengthen institutions’ internal frameworks.

He reiterated FRA’s focus on elevating the effectiveness of AML/CFT controls across capital markets, insurance, and non-banking financing sectors. He pointed to Circular No. 5 of 2026, issued last September, as well as the authority’s recent regulatory decisions to enhance digital identity verification systems within the consumer finance and micro, small, and medium enterprise (MSME) finance sectors.

Hamdy Badawy, Assistant to Chairman, highlighted the critical need to enhance corporate governance, internal controls and risk management frameworks within financial institutions. He emphasized that updated due diligence procedures must be disseminated across all internal departments to ensure full operational compliance and align corporate policies with national AML/CFT standards.

Last month, FRA hosted an expanded forum bringing together members of the EMLCU’s Strategic Analysis and Research Department with key leadership from FRA-supervised institutions—including board chairmen, chief executives and compliance officers—to strengthen early risk detection and bolster national Anti-Money laundering efforts.

FRA Hosts a Delegation of the Omani Financial Services Authority – Tuesday 3 November 2026

Dr. Islam Azzam: Knowledge sharing and regional expertise exchange sit at the top of FRA’s strategic priorities

• FRA Chairman briefs Omani delegation on non-banking financial sector developments, derivatives markets, short-selling frameworks and automated market surveillance.
• Joint discussions focus on Egyptian and Omani market developments, leveraging fintech for data analytics and systemic risk mitigation.

Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, hosted a high-level delegation from the Financial Services Authority (FSA) of the Sultanate of Oman. Led by Ahmed bin Ali Al-Mamari, Executive Vice President of the FSA, the Omani delegation included key officials from Financial Stability and Supervision Unit, Disclosure and Market Surveillance Department and Risk Analysis Department. The two-day visit aimed to strengthen bilateral cooperation, facilitate regulatory knowledge transfer and execute the operational commitments outlined in the Memorandum of Understanding (MoU) signed between the two authorities.

The bilateral sessions provided a comprehensive platform to review key market developments in both nations, share regulatory reform experiences, solidify supervisory integration and adopt best market practices to boost overall efficiency and enhance investor protection.

During the welcoming session, Dr. Islam Azzam highlighted FRA’s ongoing initiatives to develop Egypt’s capital market, update its legislative frameworks and refine operational architecture. Key focal points included the launch and regulation of the financial derivatives and futures market, the implementation of short-selling mechanisms (securities lending and borrowing for sale) and the upgrading of automated electronic market surveillance to ensure trading integrity transparency and market efficiency.

FRA Chairman emphasized that regulatory collaboration, joint technical workshops, and continuous knowledge transfer remain fundamental pillars for advancing capital markets in light of rapid financial technology advancements and complex investment products. He underscored the growing imperative of big data analytics in enhancing supervisory capabilities and proactively mitigating systemic market risks.

For his part, Ahmed bin Ali Al-Mamari, Executive Vice President of Oman’s FSA, expressed his appreciation for the visit, stressing its importance in deepening bilateral regulatory alignment and building more resilient, efficient capital markets. He reaffirmed the necessity of sustained communication between technical teams to maximize mutual benefit from shared supervisory frameworks.

Throughout the technical workshops, FRA executives delivered detailed briefings on the regulatory and operational blueprints for Egypt’s derivatives market, focusing on futures contracts as critical hedging tools for managing price volatility, enabling diverse investment strategies and deepening market liquidity.

FRA presented the ongoing preparations for short selling under Board Resolution No. 155 of 2026. Discussions outlined how regulated securities borrowing and lending will improve price discovery and market liquidity, supported by robust tech infrastructure and inter-party connectivity to secure execution and settlement processes.

The sessions addressed the automated market surveillance system, transaction monitoring mechanisms and the detection of unusual trading patterns, highlighting the leverage of technology and data analytics to enhance regulatory capabilities in detecting and handling potential violations.

A dedicated workshop focused on the oversight of certified auditors and accounting firms, covering quality assurance protocols, professional standards and coordination mechanisms with relevant professional bodies.

The Omani delegation reviewed the technical and regulatory aspects of these developments, including governing supervisory frameworks, implementation mechanisms, and risk monitoring, aligned with the mandates of the relevant departments on both sides and within the context of knowledge sharing across disclosure, market surveillance and financial stability.

At the conclusion of the visit, both sides agreed to sustain cooperation under their signed Memorandum of Understanding (MoU), helping advance regulatory frameworks in both countries and strengthening integration among Arab financial regulators.