الهيئة العامة للرقابة المالية

FRA  Tightens Transparency Rules for Gold-Linked Insurance Policies – Monday 5 October 2026

Dr. Islam Azzam Issues Landmark Circular:

• Strict rules to eliminate confusion between insurance products and other savings/investment vehicles.
• Companies must obtain written client confirmation of product terms, disclosures and mechanics.
• A ban on marketing catchphrases or sales practices that mislead customers about insurance products.

As part of ongoing efforts to tighten market oversight and safeguard customers’ rights across all non-banking financial activities, Dr. Islam Azzam, FRA Chairman has issued a circular to insurance companies aimed at enhancing disclosure and transparency for gold-linked insurance policies.

The circular requires insurers to provide full product transparency, bans deceptive marketing, and mandates proof of client understanding. This circular follows a surge in complaints regarding mis-selling—largely through bank distribution channels—where investment-linked insurance products were improperly conflated with traditional banking, savings, or investment accounts.

Companies must provide clear, accurate and non-misleading pre-contract disclosures outlining the product’s insurance nature, core benefits, risks, key terms, and any underlying investment component or strategy, enabling clients to make informed decisions.

Additionally, if a policy involves investments linked to gold or any other asset, companies must clarify the nature and management of the investment, disclosing the specific fund or investment manager where applicable.

The circular also prohibits insurance companies from implying they directly own or manage the underlying investment asset if they do not. Furthermore, it requires clarifying whether the client has the right to physical delivery or redemption of the asset, the conditions for delivery or redemption (if any), and the basis for determining liquidation or redemption values in accordance with the policy terms.

The circular strictly bans any marketing tactics or phrasing that conflates insurance products with bank deposits, accounts or traditional savings and investment vehicles. It also bars promotional materials containing inaccurate data or creating false impressions about the product’s true nature and FRA-approved terms.

Companies must secure and document a signed client acknowledgment prior to contract finalization. The client must confirm they have reviewed core terms, understand the product is an insurance policy issued by the insurance company—not a bank deposit or account—have received necessary disclosures on product features and risks and were given adequate time to ask questions.

This signed acknowledgment does not exempt insurance companies from any legal or regulatory obligations regarding disclosure or consumer protection.

Companies must review all marketing materials, templates and distribution methods used via bank distribution channels, implement necessary internal controls to ensure full compliance, and report back to FRA within one month detailing their corrective actions and the draft client acknowledgment form to be used.

FRA Licenses 12 Companies for Non-Banking Financial Activities –  Monday 5 October 2026

• Debt collection firms reach 11 with new additions… second temporary license granted for specialized medical insurance

As part of ongoing efforts to broaden the non-banking financial sector and diversify financial services and products, Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has approved the establishment, registration, and licensing of 12 companies and entities across various non-banking financial activities, alongside the incorporation of specialized funds and companies.

The decisions include approving the incorporation of “Taj Misr Tourism Real Estate Asset Investment Fund Company” and “Taj Misr Real Estate Fund Company” to operate as real estate investment funds, alongside the establishment of “Taj Misr for Securities Brokerage Underwriting Promotion and Real Estate Investment Fund Management.

In capital market activities, FRA granted “Lantis for Portfolio and Investment Fund Management” a license to conduct portfolio management, investment fund management, and securities underwriting promotion.

 Additional approvals include licensing “Al-Ahli Group Green Agriculture Investment Fund” and establishing “Al-Manzlawy Venture Capital” to acquire equity stakes in Special Purpose Acquisition Companies (SPACs).

Within custodian activities, FRA licensed “MNT Tech Holding Company for Financial Investments” and “Azimut Investments Egypt” to operate as custodians, reinforcing investment services and capital market infrastructure.

To tighten market discipline and protect client rights in debt collection, FRA registered three new firms—”Trusty for Debt Collection and Field Inquiry,” “Prime Solutions Middle East for Debt Collection,” and ” “Taswya for Consulting and Debt Collection”—bringing the total number of registered collection companies to 11.

In the specialized medical insurance sector, “Care Plus Medical Care” received a temporary license to operate as a Specialized Health Maintenance Organization (HMO), raising the number of entities holding temporary licenses to two in this newly regulated activity under the Unified Insurance Law No. 155 of 2024.

These approvals fall within the constitutional and legal mandate of the FRA to regulate and supervise non-banking financial markets and instruments. This encompasses capital markets, futures exchanges, insurance activities, mortgage finance, leasing, factoring, securitization, consumer finance, and other activities, alongside its mandate to approve the establishment and licensing of companies operating in these markets.

Incorporation, licensing and activity-related approvals are issued based on recommendations from Incorporation and Licensing Committee. This committee is tasked with reviewing and issuing initial and final approvals for companies, requests to add activities and mechanisms, opening, closing, and relocating branches, reviewing amendments to statutes, adopting incentive systems and amendments, changing the legislative framework for companies operating in securities and consumer finance, and examining liquidation requests or voluntary temporary suspension of activity.

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.