الهيئة العامة للرقابة المالية

FRA and Egyptian Federation for Consumer Finance Partner to Combat Fraud and Illegal Cash-Out Schemes – Saturday 9 May 2026

Dr. Islam Azzam, FRA Chairman:
• Boosting trust requires a solid and collaborative database.
• Ongoing market consultation aims to balance investment attraction with consumer protection.

Walid Anwar, Assistant to Chairman:
• Consumer finance development involves building an integrated risk management system.
• The Anti-Fraud Committee’s database enhances credit decision accuracy and mitigates losses.

Hamdy Badawy, Assistant to Chairman:
• Raising awareness among citizens and employees is the primary defense against fraud and financial crimes, such as money laundering and terrorism financing.

Financial Regulatory Authority (FRA) held an extensive meeting with the Anti-Fraud Committee of the Egyptian Federation for Consumer Finance and representatives from approximately 48 active consumer finance companies. The meeting aimed to review anti-fraud efforts and assess executive steps taken to combat consumer finance “cash-out” schemes. By exploring prevalent patterns and the latest negative practices, the session focused on identifying countermeasures to enhance institutions’ proactive capabilities in detecting threats, minimizing financial losses, and safeguarding corporate reputations and beneficiaries’ interests.

Dr. Islam Azzam, FRA Chairman emphasized that the meeting aligns with the Authority’s commitment to continuous communication and consultation with market participants. This approach ensures the stability and growth of consumer finance while protecting consumers’ rights. He noted that FRA adopts a collaborative strategy with all stakeholders, as addressing diverse challenges requires the integration of efforts and the exchange of expertise.

FRA Chairman added that strengthening trust in consumer finance begins with building a robust data and information foundation. This involves instilling awareness among companies and consumers regarding harmful practices and potential financial crimes by developing oversight tools, intensifying awareness campaigns, and supporting companies in adhering to professional best practices.

Dr. Azzam further explained that FRA is constantly working to evolve the sector’s regulatory environment by updating legislative frameworks and removing obstacles for market players. This ensures a strategic balance between stimulating investment and upholding consumer rights.

*Positive Developments in the Central Database
The meeting reviewed updates from the “Unified Central Database for Entities and Individuals Involved in Fraud and Consumer Finance Cash-Outs.” This database was established in accordance with FRA Board Resolution No. 222 of 2025, which mandated that companies implement mechanisms to monitor and prevent cash-out cases. The Resolution also required the Federation to develop, maintain, and share this database with its members while linking with FRA to provide necessary data and prohibit dealings with any vendors or service providers listed on the blacklist.

FRA leaders discussed various fraud patterns with company representatives, including identity theft, document forgery, cash-out operations, and the key behavioral patterns associated with these activities.

*Early Detection of Cash-Out and Fraud Patterns
Mr. Walid Anwar, Assistant to Chairman for the Non-Banking Finance Sector, explained that developing the consumer finance activity is not limited to expanding business volume. Instead, it encompasses building an integrated risk management system – primarily targeting cash-outs and fraud – through close cooperation with companies and federations.

He added that consumer finance is a vital pillar of the national economy, enabling citizens to access goods and services easily through flexible installment plans. This contributes to improving standards of living and stimulating domestic demand, while also supporting financial inclusion by integrating new segments of the population into the formal financial system.

Anwar noted that the continuous development of the database – in terms of both technological infrastructure and utilization mechanisms – bolsters companies’ ability to make more accurate credit decisions. It limits losses resulting from fraudulent practices by including everyone proven to have engaged in harmful activities, whether employees, merchants, or brokers.

*Awareness: A Collaborative Effort and First Line of Defense
Mr. Hamdy Badawy, Assistant to the Chairman for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) pointed out that strengthening anti-fraud systems is a fundamental element that must integrate with AML/CFT efforts. He emphasized that sharing information, patterns, and common databases – along with real-time information updates – are critical factors in detecting and efficiently handling suspicious transactions.

He stressed that raising awareness among both customers and employees represents the first line of defense against fraud. Prior knowledge of fraudulent methods significantly reduces the likelihood of their occurrence, which positively impacts customer trust and security. Consequently, this increases demand for services and supports the state’s financial inclusion efforts.

In a related context, the Anti-Fraud Committee of the Egyptian Federation for Consumer Finance announced the launch of a comprehensive awareness campaign. The campaign aims to educate citizens on the advantages of consumer finance and how to use it safely. Furthermore, the Committee is updating the database to increase operational efficiency, with all parties working to activate real-time case reporting through electronic linkage between companies and the system via API Integration. This will allow companies to avoid dealing with customers previously involved in fraudulent practices.

*Mechanisms and Recommendations for Enhancing Early Detection
The Anti-Fraud Committee has introduced a supplementary “Watch List” alongside the existing “Blacklist” to bolster early detection capabilities. This system allows multiple companies to report the same client, thereby improving data accuracy and strengthening the reliability of the information provided.

Furthermore, client data management mechanisms have been improved, enabling multiple users within a single company to modify client profiles. The system now also supports linking multiple clients to a single file if they are associated with a joint transaction. Additionally, the capacity for attachments has been increased to accommodate supplementary documentation that supports vetting and verification processes. Efforts have also been made to streamline Bulk Upload operations, particularly regarding provincial and regional codes.

The meeting reviewed the Committee’s latest activities, including coordination with the Egyptian Federation for Microfinance to join the Consumer Finance Federation’s anti-fraud system. This step is designed to integrate efforts and expand the protective umbrella across various non-banking financial activities, paving the way for other federations to join sequentially.

By the end of the meeting, the Committee recommended that companies adopt clear, updated internal policies and procedures to counter fraud. These should include precise risk definitions and response mechanisms, alongside an emphasis on continuous staff training to ensure employees can efficiently identify and handle diverse fraud patterns. The Committee also called for the preparation of periodic reports featuring digital analytics of fraud trends to support proactive decision-making, minimize losses, and protect institutional reputations.

These initiatives are part of the Authority’s broader strategy to expand this system to include the Microfinance Federation, followed by other financial federations. The goal is to create an integrated defensive ecosystem against fraud.
This strategy involves enhancing human capital through specialized workshops, launching public awareness campaigns, and leveraging digital data analytics. Consequently, this necessitates regular updating of operational policies and strengthening real-time verification mechanisms to ensure a secure financing environment that contributes to national economic growth and bolsters investor and consumer confidence.

FRA Warns Citizens: Avoid Unlicensed Platforms and Entities Promising Unrealistic Returns –  Friday 8 May 2026

Dr. Islam Azzam, FRA Chairman:

• Awareness is the primary defense against traps of digital fraud.
• FRA warns against false promises and urges citizens to verify licenses to protect their savings.

Hamdy Badawy, Assistant to Chairman:

• FRA is exercising its law enforcement powers and monitoring unlicensed platforms to safeguard investor funds.
• We are tracking the latest fraud patterns through a top-tier complaint and monitoring system.

The Cabinet Media Center has released a new educational video highlighting the dangers of deceptive advertisements that promise unrealistic returns or easy access to financing. The video warns citizens against falling prey to unlicensed entities and platforms that lure individuals into depositing or investing funds without the necessary regulatory approvals from the Financial Regulatory Authority (FRA).

FRA has identified several such entities and advertisements utilizing fraudulent tactics to entrap citizens. Engaging with these platforms can lead to total loss of funds, personal data theft, and the forfeiture of legal rights, as there is no regulatory oversight to protect participants.

Verifying a provider’s license has become a simple process. Citizens can search FRA website by entity name or activity type, or submit an inquiry via the dedicated email address. Additionally, FRA has introduced a “Negative List” (available at: http://services.fra.gov.eg/alerts ), which includes  unlicensed entities, websites, and social media pages identified through public reports. The Authority also maintains an updated directory of licensed non-banking financial institutions, allowing citizens to ensure the legitimacy of an entity before engagement.

The video stresses the necessity of ignoring links from unknown sources and strictly advises against sharing banking details or One-Time Passwords (OTPs). It also emphasizes using digital security measures, such as enabling multi-factor authentication and updating passwords regularly.

Furthermore, the Cabinet Media Center urges individuals to report fraud attempts immediately via FRA hotline (19669) or the dedicated whistleblower email (whistleblowing@fra.gov.eg).  Victims are advised to contact the Internet Police and take urgent action by notifying their bank or finance company to freeze accounts if data has been compromised.

The video concludes by affirming that caution and awareness are the best defenses against fraud, noting that FRA remains a key partner in protecting consumer rights and fostering trust in non-banking financial markets.

*Monitoring Emerging Criminal Patterns

Dr. Islam Azzam, FRA Chairman emphasized that enhancing financial literacy is the primary line of defense against fraud, particularly given the rapid expansion of fintech and the resulting emergence of sophisticated illicit practices.

 He explained that education must evolve alongside technological progress, as higher financial literacy enables individuals to distinguish between legitimate investment opportunities and fraudulent schemes built on unrealistic promises.

The Chairman added that the Authority is continuously developing an integrated suite of regulatory and educational tools to stabilize non-banking financial markets and provide a secure environment. He urged citizens to exercise caution, verify licenses before any transaction, and avoid being misled by deceptive advertising.

In a related statement, Mr. Hamdy Badawy, Assistant to Chairman, noted in a televised interview with “Extra News” that FRA’s role is to regulate and supervise the non-banking financial sector, including capital markets, insurance, and consumer finance. He warned that the absence of oversight in any investment activity means there is no audit of financial statements or guarantees for participant rights, exposing citizens to grave risks.

He further explained that scammers employ several tactics to entrap victims, starting with attractive ads promising high returns. They often provide small “fake” profits initially to gain trust, sometimes even returning the principal amount upon request in the early stages to encourage the victim to invest larger sums or recruit others.

Badawy noted that the Authority counters these practices through a high-level complaint and follow-up system, monitoring unlicensed entities and websites by specialized units, and the activation of law enforcement powers to take legal action against violators. This is in addition to publishing “negative lists” and educating citizens on the necessity of avoiding any untrusted platforms or applications not registered in the Authority’s registries.

In light of these awareness efforts, Financial Regulatory Authority (FRA) reaffirms its commitment to strengthen communication channels with the public and intensify awareness campaigns to combat emerging fraudulent methods, thereby establishing a secure financial environment based on transparency and trust.

The Authority also renews its call for all participants to remain vigilant and not hesitate to inquire about or report any suspicious practices, believing that partnership between citizens and regulatory bodies is the cornerstone of protecting savings and supporting the stability and growth of non-banking financial markets in Egypt.

FRA Chairman to Bloomberg: Priority Set on Deepening Markets and Expanding Investor Base – Friday 8 May 2026

Dr. Islam Azzam:
• Derivatives market is set to become a primary draw for youth… An integrated project to provide all market data and information in both Arabic and English
• Market Maker mechanism will boost liquidity, and we are considering incentives to activate carbon credit trading.
• Evolving investment patterns necessitate intensified awareness of non-banking financial activities.

Dr. Islam Azzam, FRA Chairman received a delegation from Bloomberg, currently visiting Egypt. During the meeting, he reviewed ongoing development efforts in the Egyptian Capital Market and their transformation into tangible results regarding liquidity, market depth, and the attractiveness of institutional and foreign investment.

Dr. Azzam outlined FRA’s strategic framework for market oversight and development, focusing on diversifying financial instruments, optimizing pricing efficiency, and elevating disclosure standards. He underscored Egypt’s evolution from a conventional market into a sophisticated, multi-asset ecosystem equipped with robust risk management tools and advanced investment alternatives.

He explained that the new trading system developed by the Egyptian Exchange (EGX) in cooperation with Nasdaq will be activated soon. It will provide integrated trading for equities, fixed-income instruments, derivatives, and carbon credits, thereby increasing order execution efficiency, settlement speed, and risk management.

Dr. Islam Azzam highlighted the significance of the steps following the launch of derivatives market, such as the introduction of EGX30 index futures on the Egyptian Exchange. He noted that work is underway to make option contracts available in the coming period and to activate market maker activities. Furthermore, the final step in activating short-selling mechanisms has been completed through the integration between brokerage firms and Misr for Central Clearing, Depository and Registry (MCDR).

Dr. Azzam noted that launching option contracts within the coming year will provide vital hedging and risk management instruments, essential for attracting new institutional capital. Furthermore, the activation of market-making mechanisms is expected to drive higher daily liquidity levels, thereby strengthening price discovery and market efficiency.

Addressing the secondary market, Dr. Azzam detailed a suite of measures aimed at streamlining listing and trading protocols to accelerate market accessibility. The FRA is leveraging fintech solutions and innovative outreach channels to cultivate a high-liquidity environment supported by a broader, more diversified investor demographic.

He revealed that the Authority is working on an ambitious project to make all data and information across the markets available in both Arabic and English. This will achieve three goals: attracting new investors by informing them of current developments, ensuring full connectivity with market participants, and enabling FRA, federations, and companies to perform advanced analytical operations to support accurate future decision-making and policy efficiency.

Dr. Azzam emphasized that derivatives markets are expected to become a primary attraction for young investors. He pointed out that the 18-to-40 age group now accounts for approximately 79% of all market participants, a clear signal of the rising appetite among younger generations for sophisticated financial instruments.

He also noted that newly introduced investment funds, including gold and silver funds, recorded high participation from youth at approximately 80%. This reflects a qualitative shift in their saving and investment patterns, which also necessitates intensified awareness efforts to ensure sound investment decision-making.

Additionally, FRA Chairman emphasized that the Authority adopts an integrated approach to spread awareness, such as collaborating with the Ministry of Education to integrate financial literacy into the secondary school curriculum. This is in addition to developing interactive digital content that explains investment concepts and risk management in simplified language to raise financial awareness across broader segments of society.

Dr. Azzam further noted that the launch of the Voluntary Carbon Market represents a strategic milestone in integrating Egypt’s financial ecosystem with global markets. He revealed that the Authority is currently evaluating a framework of incentives designed to activate carbon credits trading.

The meeting addressed ways Bloomberg can contribute to support Egyptian markets, particularly in providing advanced data and analytics to foreign investors, supporting transparency and disclosure quality, and participating in financial awareness programs. Discussions also covered the transfer of international expertise in derivatives markets and sustainable investment.

Members of the delegation confirmed that introducing derivatives, activating carbon market, and updating technological infrastructure are attractive elements for international investors, as they ensure market efficiency and expansion. They also expressed a keen interest in sharing Egypt’s experience in these specialized fields.