الهيئة العامة للرقابة المالية

FRA, AML/CFT Unit Convene Joint Meeting for Non-Bank Financial Sector – Saturday 3 October 2026

• High-level meeting focused on strengthening Anti-Money laundering frameworks, early risk detection and targeted financial sanctions.

Dr. Islam Azzam – FRA Chairman:

• Mandatory compliance with updated Customer Due Diligence (CDD) guidelines and robust internal systems.
• Continuous coordination between the Authority and the Unit to enforce relevant legislation and decisions and raise awareness of their provisions.

Hamdy Badawy – FRA Assistant Chairman:

• Updating governance and risk management is vital for market growth and institutional resilience.

Within the framework of ongoing cooperation between the Financial Regulatory Authority (FRA) and the Anti-Money Laundering and Terrorist Financing Unit (AML/CFT Unit), FRA hosted a comprehensive meeting bringing together members of the Unit’s Research and Strategic Analysis Department with chief executives, managing directors and compliance officers from non-bank financial institutions. The session aimed to bolster efforts to combat money-laundering risks and enhance early detection mechanisms.

FRA Chairman Dr. Islam Azzam received representatives from the Unit, praising its pivotal role—under the leadership of Counselor Ahmed Saeed Khalil, Chairman of the Board of Trustees—in maintaining continuous coordination with the Authority as a key Egyptian regulatory body. He commended the Unit’s efforts in enforcing legislative and regulatory frameworks for Anti-Money laundering and terrorist financing, cascading them across various economic sectors, raising awareness of their provisions and providing specialized training and capacity-building for state agencies and the public.

Dr. Islam Azzam underscored his commitment to strengthen the efficiency and effectiveness of AML/CFT controls across regulated activities. He pointed to FRA Circular No. 5 of 2026, issued days earlier, which mandates that all institutions operating in capital markets, insurance and non-bank financing strictly adhere to the updated version of the “Customer Due Diligence Procedures for Financial Institutions Regulated by the FRA,” issued by the AML/CFT Unit last September.

Furthermore, FRA Chairman highlighted the significance of recent FRA resolutions designed to upgrade digital customer verification systems. These include identity checks via One-Time Passwords (OTP), real-time integration between consumer and microfinance companies and I-score, and preparations for full data linkage between consumer finance databases and FRA’s central repository. These measures facilitate the early detection of negative trends and risks—chiefly fraud and money laundering—while improving operational quality, safeguarding credit underwriting and minimizing default risks.

During the session, representatives from the AML/CFT Unit delivered an in-depth presentation on money laundering and terrorist financing risks. They stressed the importance of implementing targeted financial sanctions which involve asset freezes and prohibitions against making funds or assets available to designated individuals or entities. This includes compliance with negative lists derived from UN Security Council resolutions and domestic designations under the Law No. 8 of 2015 on Terrorist Entities.

The discussions also addressed customer due diligence and identity verification, indicators for high-risk profiles, established legal arrangements, criteria for identifying predicate offenses and ultimate beneficial owners, internal employee protocols, customer acceptance policies, and continuous due diligence through transaction monitoring. Officials emphasized that AML/CFT requirements do not impede financial inclusion objectives or the delivery of non-bank financial services.

The Unit’s representatives underscored the need for firms to maintain robust documentation of their compliance procedures. This ensures companies can demonstrate their ability to handle risks and suspicious transactions per national standards, while continuously evaluating internal frameworks for maximum efficiency.

For his part, FRA Assistant Chairman Hamdy Badawy stated that the meeting reflects the shared commitment of the Authority and regulated entities to strictly enforce AML/CFT systems and adapt internal practices to evolving market risks.

He added that upgrading regulatory, governance and risk management frameworks in the non-bank financial sector is a vital institutional necessity to meet domestic and international standards. He described it as a core pillar for preserving service quality, driving market growth and amplifying the sector’s contribution to the national economy.

Furthermore, FRA Assistant Chairman Hamdy Badawy spotlighted the sector’s obligation to implement Circular No. 5 of 2026. The directive mandates distributing the updated AML/CFT customer due diligence guidelines across all subsidiaries, branches, departments, and personnel—ensuring complete staff compliance, updated internal controls and full alignment with revised standards.

It is worth mentioning that the non-banking financial sector is governed by strict Anti-Money laundering regulations, rooted in Law No. 80 of 2002 and its executive rules. Key measures include Board Decision No. 161 of 2024, requiring robust internal risk-assessment systems, and Decision No. 186 of 2024, enforcing rigorous customer data verification.

FRA Greenlights Subscription for Distressed Factories Restructuring Fund Starting Next Sunday –  Friday 2 October 2026

Dr. Islam Azzam, FRA  Chairman:

• “This fund is the result of close collaboration to drive the state’s mission to rescue distressed industrial plants.”

• “The Authority is leveraging non-banking financial products to fuel vital economic sectors, with investment funds becoming powerful catalysts for business growth.”

As part of the Authority’s continuous support for vital economic sectors and in continuation of efforts to back the industrial sector through non-banking financial products under its supervision, Dr. Islam Azzam, FRA Chairman has approved licensing of Distressed Factories Restructuring Investment Fund (No. 1033) in light of presidential directives and Egypt’s Vision 2030. Unit subscription will start Sunday, October 4, 2026.

Under FRA-approved information memorandum, the fund is offering 1 billion units—including shares allocated to the founder—at a nominal value of EGP 1 per unit, bringing the total capital to EGP 1 billion.

Established under Capital Market Law No. 95 of 1992 and its executive bylaws, the fund targets a capitalization of EGP 1 billion, payable in installments aligned with viable investment opportunities. Under the approved memorandum, the investment manager will apply strict quantitative and qualitative criteria to select target companies with high turnaround potential, ensuring robust post-restructuring returns backed by comprehensive feasibility studies.

Dr. Islam Azzam emphasized that launching the Distressed Factories Restructuring Fund is the culmination of joint efforts and close cooperation between the Authority, relevant entities and fund stakeholders, aimed at implementing the state’s plan to rescue distressed industrial companies and factories, leverage their productive capacities and existing assets, and establish a fundamental step toward advancing and sustaining the industrial sector.

He explained that FRA remains committed to its approach of employing non-banking financial products to bolster sectors of vital importance to the national economy, as well as expanding and deepening the activities under its regulation to further increase their contribution to national economic. He noted that continuous development of the regulatory framework for open- and closed-end investment funds has positively impacted the ease of doing business and fostered secure investment pathways under FRA’s full supervision.

The fund operates as a closed-end private equity vehicle, offering its units through a private placement limited to qualified institutional, corporate and individual investors under FRA Board Decision No. 48 of 2019. CI Capital B.I. for Fund Management, Investment and Venture Capital will manage the fund’s investments.

It targets direct equity investments in struggling companies across core sectors—including food, engineering, chemicals, textiles and apparel, pharmaceuticals, and building materials—to overhaul their operational and financial frameworks.

Designed to spearhead corporate recovery, the vehicle steps in for industrial enterprises burdened by heavy debt and deferred obligations, yet possessing viable products, solid market share and core economic fundamentals.

The fund executes this role in coordination with the executive management of target companies, in line with directives from the fund’s Investment Committee. The investment manager is also authorized to form specialized technical committees comprising industry experts tailored to each transaction and target sector.

Furthermore, investment opportunities are evaluated prior to acquisition and divestment.  Independent financial advisors registered with FRA will assess the net asset value of the fund semiannually in accordance with FRA regulatory valuation standards.

FRA Issues Circular Safeguarding Status of Advisory Insurance Experts Registered Before Unified Law – Thursday 1 October 2026

Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has issued a circular for current advisory insurance experts on how to comply with the Unified Insurance Law No. 155 of 2024.

The circular clarifies that experts already registered with FRA do not need a new license or registration following the new law. Instead, their standard five-year registration period simply runs its course from the law’s effective date of July 11, 2024.

This measure aims to safeguard legal continuity and facilitate procedures for advisory insurance experts already registered with the Authority.

The circular clarifies that the expiration of the status-rectification grace period does not trigger a new registration term or an automatic renewal. Existing registrations will remain valid until their original conclusion date, calculated from the law’s effective date. However, failure to meet the prescribed requirements by the deadline will prompt regulatory and legal action by the Authority, subject to existing provisions governing registration terms and renewals.

Simultaneously, the circular emphasized that advisory experts must comply and fulfill the new conditions and requirements introduced by the Unified Insurance Law and FRA Board of Directors Decision No. 25 of 2026—issued last February regarding registration rules, conditions, procedures and activity practice—within the designated grace period.

Experts are also mandated to secure a professional indemnity insurance policy in compliance with Article 133 of the law and to submit a valid, compliant copy to the Authority.

Insurance advisory expertise covers specialized professional consulting provided by individuals or firms—spanning risk management and assessment, valuing assets and liabilities for insurers and reinsurers, evaluating rights between policyholders and insurer and preparing expert reports for courts and arbitral tribunals. The Unified Insurance Law features a dedicated chapter on introducing key regulations such as mandatory FRA registration and permitting the establishment of specialized consulting firms.