الهيئة العامة للرقابة المالية

Dr. Islam Azzam – FRA Chairman:

“Registration establishes a comprehensive regulatory framework for debt collection to safeguard consumer rights.”

Financial Regulatory Authority (FRA) chaired by Dr. Islam Azzam, has approved the registration of “EGY SERV” and “Egyptian International” as debt collection firms for Non-Bank Financial Sector. These are the first two firms to be listed in the newly created registry which was established by the Authority to regulate debt collection and set a clear supervisory and professional framework.

This milestone comes in implementation of FRA Board of Directors Resolution No. (278) of 2025. The resolution introduced a dedicated registry for collection firms and explicitly prohibited non-banking financial entities from dealing with unregistered collection companies. It also granted existing non-banking financial institutions a six-month grace period to comply with the new regulations, which expires on July 22.

Dr. Islam Azzam, FRA Chairman emphasized that establishing this registry and initiating company listings represents a vital step toward enhancing the efficiency and organization of the non-banking financial market. By introducing clear rules and standards for financial collection, the framework aims to foster trust among market participants while elevating levels of governance and professional discipline.

He further explained that FRA continues to develop the regulatory and supervisory frameworks for non-banking financial activities to keep pace with rapid market changes, ensuring a balance between supporting financial growth and protecting consumer and investor rights.

Under FRA Board of Directors Resolution No. (278) of 2025, the newly established registry  shall contain all critical corporate data, including the legal name, corporate structure, business purpose, and headquarters address of collection firms, alongside profiles of executive management, legal representatives and official contact details.

 To enforce compliance, non-banking financial entities are strictly prohibited from utilizing any unregistered collection agencies once the transition period ends.

 To gain entry into the registry, applicant firms must submit a formal request to FRA accompanied by all necessary supporting documentation. This includes the company’s articles of association, audited financial statements, and a verified track record of prior collection service contracts, which FRA will review and rule upon within a maximum of 30 days from submission.

The resolution stipulates that any applicant must be formally structured as a recognized commercial corporate entity with a business purpose explicitly dedicated to debt collection. Financially, companies are required to maintain a minimum issued and paid-in capital of EGP 10 million (or its foreign currency equivalent) and total equity of at least EGP 20 million.

For companies that do not meet the minimum equity requirement, the resolution offers an alternative pathway: they must have actively operated in the financial collection sector for at least three consecutive years prior to their application date. However, FRA mandates that under all circumstances, a company’s total equity must never fall below its paid-in capital.

 According to the resolution, registration remains valid for a three-year term and is renewable for equivalent periods, provided the firm continues to fulfill all compliance standards. Renewal requests must be submitted to the Authority at least three months before the current registration expires.

To safeguard market integrity, the resolution holds registered companies to strict standards of honesty, integrity, and professionalism. The regulation explicitly bars collection firms from any practices that could harm consumers or partner financial institutions. Additionally, these entities are restricted solely to collection activities and are prohibited from providing their own financing or lending services.

To safeguard financial transactions, the resolution establishes strict collection mechanisms. It explicitly prohibits collection companies from depositing any recovered funds into their own corporate bank accounts. Instead, the framework mandates the exclusive use of approved non-cash payment methods or checks issued directly in the name of the creditor entity – a measure designed to significantly enhance transparency and minimize operational risks.

The resolution enforces strict compliance with client data confidentiality. Collection firms are barred from sharing or using this sensitive information for any unauthorized purposes. Furthermore, these companies must provide FRA with comprehensive semi-annual reports detailing their operational performance, contracted entities, total funds collected and the specific collection channels deployed.

In a concerted effort to tighten market oversight and protect consumer rights, the resolution requires all non-banking financial institutions to notify clients of their contracted collection firms. Institutions must provide customers with reliable verification methods to confirm a collector’s identity, alongside official channels for communication. Furthermore, financial entities are obligated to monitor complaints filed against these collection agencies and take prompt corrective action when necessary.

The resolution grants FRA Chairman the authority to penalize registered firms that violate these regulations. Depending on the severity of the breach, enforcement actions can scale from formal warnings and temporary suspensions to permanent delisting from the registry.