الهيئة العامة للرقابة المالية

• FRA issued four key resolutions designed to increase transparency, prevent money laundering and safeguard stakeholders.

Dr. Mohamed Farid:

• The Authority is fully committed to regulate all non-banking financial markets to effectively improve Egypt’s ranking in international indices.
• FRA is striving for enhanced transparency, robust stakeholder protection and sustained sector stability and growth.
• The resolutions mandated that MSMEs finance entities must comply with AML laws.
• Financing companies must periodically report comprehensive data on clients, complaints, financing, locations, credit limits and performance metrics.

FRA Board of Directors chaired by Dr. Mohamed Farid issued four new resolutions. These resolutions aim to strengthen the regulatory and organizational framework for MSMEs finance. This action is part of FRA’s strategy to comprehensively develop the non-banking financial sector, thereby positively impacting all stakeholders in the non-banking financial markets.

Resolutions No. 243 and 244 of 2025 targeted entities operating in the microfinance sector, including companies and civil society institutions. These entities are now subjected to AML law, in addition to being required to submit multiple periodic regulatory reports.

Furthermore, resolutions No. 245 and 246 of 2025 mandated entities (companies and civil society institutions) that finance small and medium-sized enterprises (SMEs) to issue periodic regulatory reports, including monthly, quarterly and annual submissions.

Dr. Mohamed Farid, FRA Chairman affirmed that subjecting MSME financing entities to the Anti-Money Laundering Law will reduce money laundering risks. This, in turn, supports transparency, guarantees consumer protection, and solidifies stability and growth of this vital sector.

He added: “The Authority will not hesitate to monitor all non-banking financial markets, as this is a key step toward achieving Egypt’s goals for enhancing the national economy. Improving Egypt’s ranking in international indices, especially economic indicators and sovereign credit ratings, is an indispensable necessity.”

FRA Chairman explained that the new reports will provide the Authority with a more in-depth view of the quality of financing portfolios and service distribution. This will enhance its ability to assess systemic risks and implement preventative measures to protect the market.

The Authority required all MSME financing entities to submit a series of monthly disclosures. This includes reports covering operational performance, geographic reach, financial solvency, electronic transactions, human resources demographics, credit limits granted, mandatory insurance activities and corporate governance (board/key functions).

The four resolutions also stipulated the issuance of quarterly reports, which include the Quarterly Performance Report, the Customer Geographical Distribution Database Report and the Report on Companies’ Contribution to “Decent Life” Initiative (Hayah Kareema). Furthermore, an Annual Follow-up Report and a semi-annual report including Customer Complaints Register are required.

Earlier, FRA revoked the licenses of approximately 518 Category (C) NGOs and civil society institutions after they violated the legal and regulatory controls governing the activity. This followed continuous inspection operations carried out by FRA on entities under its supervision, as part of its market efficiency enhancement strategy.

The inspections revealed that these civil society institutions had completely failed to practice their intended activities or provide any financing services to the targeted groups. Moreover, they consistently refrained from submitting periodic reports and financial statements, which prevented the Authority from assessing their financial positions and monitoring their performance.

The Authority approved these amendments in response to the digital transformation that is reshaping the non-banking financial sector and all its operating entities. This regulatory evolution aligns with Egypt’s Vision 2030, which aims to expand the base of financial services beneficiaries and enhance data quality to support informed decision-making.