Egypt’s Financial Regulatory Authority (FRA) has issued a directive requiring all non-bank financial institutions to revise their customer identification and verification forms. The order, outlined in Circular No. 8 of 2026, mandates that companies update their internal policy manuals and control systems to align with revised anti-money laundering and terrorist financing regulations.
Enhanced Accessibility and Compliance
The new directive, issued by FRA Chairperson Islam Azzam, requires institutions to specifically adjust their documentation to accommodate customers who require special assistance. This includes individuals with disabilities, the elderly, and illiterate clients. The regulator aims to ensure that identification procedures remain accessible and user-friendly for these demographics while maintaining strict verification standards.
Under the new rules, institutions must submit their updated policy manuals and internal control systems to the FRA. These documents must accompany the annual anti-money laundering and terrorist financing report for 2026, with a final submission deadline set for January 31, 2027.
The FRA stated that these updates are essential to accelerating the implementation of current financial oversight frameworks. The initiative builds upon Circular No. 5, issued in September, which initially required firms in the capital market, insurance, and non-bank financing sectors to adopt updated due diligence procedures.
Governance and Risk Management
Hamdy Badawy, Assistant to the FRA Chairperson, emphasized that companies must prioritize the development of robust governance and risk management frameworks. He noted that institutions are responsible for ensuring all relevant employees are familiar with the updated due diligence requirements.
The regulatory shift is part of a broader effort to modernize the digital framework for verifying customer data in consumer finance and small-to-medium enterprise lending. The FRA intends for these measures to improve the reliability of financial data and strengthen overall internal controls across the non-bank sector.