الهيئة العامة للرقابة المالية

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.

FRA Chairman Joins EGX Bell-Ringing Ceremony to Launch Trading on Banque du Caire Shares – Monday 2 November 2026

Dr. Islam Azzam, FRA  Chairman: Banque du Caire Listing Journey Reflects Highest Levels of Institutional Coordination

• Unwavering Support for the State Ownership Policy and Government IPO Program
• Trading Banque du Caire Shares Marks a Key Step in an Ambitious Drive to Enhance Asset Management Efficiency and Broaden Ownership Base
• The Event Holds Exceptional Significance Given the Offering’s Massive Scale and Strong Investor Demand

Dr. Islam Azzam, FRA Chairman, participated today in the traditional bell-ringing ceremony at the historic headquarters of the Egyptian Exchange (EGX) to mark the start of trading on Banque du Caire’s (BdC) shares.

Prime Minister Dr. Moustafa Madbouly attended the ceremony, signaling a major execution milestone under Egypt’s State Ownership Policy Document and its broader government privatization program.

The event gathered key leaders from across Egypt’s financial sector, including Central Bank of Egypt Governor Hassan Abdallah; Dr. Hashim El Sayed, Assistant to the Prime Minister and Head of the State-Owned Enterprises Unit; Omar Radwan, EGX Chairman. In addition to Mohamed El-Etreby, CEO of National Bank of Egypt; Hesham Okasha, CEO of Banque Misr; and Hussein Abaza, CEO of Banque du Caire, alongside senior executives from the banking and capital markets sectors.

In his keynote address, Dr. Islam Azzam highlighted that listing Banque du Caire represents a pivotal landmark in an ambitious strategy designed to optimize asset management, widen the ownership base, attract strategic growth investors, expand market capitalization and deepen market liquidity—ultimately driving structural reforms and strengthening national economic competitiveness.

He noted that Banque du Caire’s listing journey reflected an exceptional level of coordination and integration among key stakeholders—led by the Financial Regulatory Authority (FRA), the State-Owned Enterprises Unit, the joint lead managers (investment banks), the legal advisor, the Egyptian Exchange (EGX), and Misr for Central Clearing, Depository and Registry (MCDR). This joint effort focused on fulfilling prospectus disclosures and data requirements, reviewing aspects related to the share’s fair value, completing necessary regulatory documentation for the offering, and coordinating procedures for listing, trading, and settlement.

Underscoring Banque du Caire’s deep-rooted heritage and systemic importance within the Egyptian-banking sector, Dr. Islam Azzam noted that the listing adds a premier banking institution backed by robust financial performance. By year-end 2025, BdC’s total assets reached EGP 533 billion, with a loan portfolio of EGP 258 billion and customer deposits standing at EGP 401 billion. Net profit surged 30% year-on-year to EGP 16.1 billion, while maintaining a sound Capital Adequacy Ratio (CAR) of 22.06%.

FRA Chairman further noted the historic scale and overwhelming investor appetite for the transaction. The offering comprised 45% of the bank’s total share capital, generating an aggregate transaction value of approximately EGP 36.4 billion at a final offer price of EGP 5.30 per share—implying an equity market capitalization of EGP 80.8 billion for the bank. Institutional tranche demand hit EGP 205.8 billion, representing an oversubscription rate of nearly 6x, while the retail tranche was oversubscribed by 27x.

From a capital markets perspective, the inclusion of Banque du Caire injects EGP 80.8 billion in market capitalization into the EGX, representing roughly 2.1% of the total market cap of listed companies as of the last trading session. This milestone substantially enhances market depth, broadens sectoral representation, and reinforces market attractiveness for both local and international investors and boosts confidence in Egyptian market opportunities.

Dr. Islam Azzam reaffirmed the FRA’s commitment to facilitating the executive roadmap for the second phase of the State Ownership Policy. He stressed that the authority’s mandate extends beyond regulating offerings to creating a transparent, fair, and equitable investment environment that safeguards investor rights and guarantees equal opportunity for all market participants.

He concluded by outlining FRA’s three-pillar strategy in support of the government’s IPO program: streamlining regulatory processes while ensuring strict legal compliance; proactively engaging market participants to resolve operational hurdles; and building institutional capacity across target IPO companies. Through its educational arms—the Financial Services Institute and the Egyptian Institute of Directors—FRA has already trained 118 executives across 34 state-owned including both provisionally listed firms and those targeted for listing in the upcoming phase.