الهيئة العامة للرقابة المالية

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.