{"id":24946793,"date":"2026-08-24T09:46:10","date_gmt":"2026-08-24T06:46:10","guid":{"rendered":"https:\/\/fra.gov.eg\/fra_news\/%d9%82%d8%b1%d8%a7%d8%b1%d8%a7%d8%aa-%d9%88%d8%ac%d8%b2%d8%a7%d8%a1%d8%a7%d8%aa-%d8%b9%d8%a7%d8%ac%d9%84%d8%a9-%d9%85%d9%86-%d8%a7%d9%84%d9%87%d9%8a%d8%a6%d8%a9-%d8%a7%d9%84%d8%b9%d8%a7%d9%85%d8%a9\/"},"modified":"2026-08-25T11:52:22","modified_gmt":"2026-08-25T08:52:22","slug":"%d9%82%d8%b1%d8%a7%d8%b1%d8%a7%d8%aa-%d9%88%d8%ac%d8%b2%d8%a7%d8%a1%d8%a7%d8%aa-%d8%b9%d8%a7%d8%ac%d9%84%d8%a9-%d9%85%d9%86-%d8%a7%d9%84%d9%87%d9%8a%d8%a6%d8%a9-%d8%a7%d9%84%d8%b9%d8%a7%d9%85%d8%a9","status":"publish","type":"fra_news","link":"https:\/\/fra.gov.eg\/en\/fra_news\/%d9%82%d8%b1%d8%a7%d8%b1%d8%a7%d8%aa-%d9%88%d8%ac%d8%b2%d8%a7%d8%a1%d8%a7%d8%aa-%d8%b9%d8%a7%d8%ac%d9%84%d8%a9-%d9%85%d9%86-%d8%a7%d9%84%d9%87%d9%8a%d8%a6%d8%a9-%d8%a7%d9%84%d8%b9%d8%a7%d9%85%d8%a9\/","title":{"rendered":"FRA Imposes Urgent Penalties and Sanctions Over Illegal School Loan Scheme \u2013 Monday 24 August 2026"},"content":{"rendered":"<ul>\n<li><span style=\"color: #800000;\">Criminal action initiated against consumer finance firm, new contracts suspended for 30 Days, and strict measures imposed on key executives<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>In line with its constitutional mandate to oversee non-banking financial activities, regulate market transactions, and safeguard consumer rights, Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, issued series of decisions and enforcement measures regarding an incident where an international school exploited parents&#8217; personal data to secure loans from a consumer finance company.<\/p>\n<p>The Authority launched an intensive four-day investigation immediately upon detecting reports of the incident, prior to receiving formal complaints concerning the credit ratings of affected parents.<\/p>\n<p>Specialized technical teams from the non-banking finance, complaints, compliance and anti-money laundering departments were deployed immediately to conduct field inspections, in-depth audits and direct interrogations with all involved parties. Working in swift coordination with relevant authorities, these efforts successfully eliminated all adverse impacts on affected parents and completely canceled all resulting financial and credit obligations.<\/p>\n<p>In light of the investigation findings, the specialized committee convened to review the violations and determine liabilities among the involved parties, in accordance with the provisions of Consumer Finance Law No. 18 of 2020 and its executive regulations.<\/p>\n<p>Based on the committee&#8217;s recommendations, FRA Chairman Dr. Islam Azzam issued a decree detailing the following measures:<\/p>\n<ul>\n<li>Initiation of criminal proceedings against the consumer finance company regarding its violations of the governing regulatory law.<\/li>\n<li>A one-month ban prohibiting the consumer finance company from executing any new financing contracts.<\/li>\n<li>Immediate suspension of the company\u2019s operations in school tuition and club membership financing products, banning new originations pending a full regulatory review of all such products by the Authority.<\/li>\n<li>Mandatory convening of the company\u2019s General Assembly, in the presence of FRA representative, to address the attributed violations and implement measures to tighten internal controls.<\/li>\n<li>Canceling the Chief Executive Officer&#8217;s consumer finance license, alongside disciplinary measures enforced against several key executive officers for committing violations that affected market participants&#8217; rights, pursuant to FRA Board Resolution No. 45 of 2026.<\/li>\n<\/ul>\n<p>These sanctions were grounded in Article (22) of Consumer Finance Law No. 18 of 2020 following critical breaches of corporate governance, credit inquiry rules, financing rules and anti-money laundering protocols.<\/p>\n<p>FRA emphasized that its regulatory enforcement operates independently from ongoing investigations by the Public Prosecution which has been formally notified of the facts.<\/p>\n<p>Through these swift actions and enforcement measures against the involved parties, the Authority aims to achieve maximum protection for market participants against illicit practices, safeguard consumer funds and maintain transaction stability across the non-banking financial sector.<\/p>\n<p>The Authority strongly emphasizes that all entities operating under its supervision must strictly comply with the regulatory framework established to verify customer identity and data accuracy, in accordance with Board Resolution No. 186 of 2024 and its amendments.<\/p>\n","protected":false},"author":7,"featured_media":16088972,"parent":0,"template":"","format":"standard","categories":[144,142],"tags":[3704,3791,3910,5611,5612,5613,5614,5615,5616,5617,5618,5619],"fra_news_taxonomy":[2137,2138],"news_paper_taxonomy":[],"class_list":["post-24946793","fra_news","type-fra_news","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases","category-media-center","tag-fra-chairman","tag-financial-regulatory-authority-fra","tag-dr-islam-azzam","tag------en","tag-----en-2","tag----en","tag-----en","tag---en","tag-international-school-loan-scheme","tag-penalties-and-sanctions","tag-protection-of-market-participants-right","fra_news_taxonomy---en","fra_news_taxonomy-----en"],"_links":{"self":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news\/24946793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news"}],"about":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/types\/fra_news"}],"author":[{"embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/users\/7"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/media\/16088972"}],"wp:attachment":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/media?parent=24946793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/categories?post=24946793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/tags?post=24946793"},{"taxonomy":"fra_news_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news_taxonomy?post=24946793"},{"taxonomy":"news_paper_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/news_paper_taxonomy?post=24946793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}