Updated Regulations Established by CBE for Egypt's Payment Services provide Guidelines on Governance and Internal Controls
The Central Bank of Egypt (CBE) has taken a significant step towards enhancing the security and efficiency of electronic payments in the country. In June 2025, the CBE issued a series of regulations aimed at aligning with rapid developments in the electronic payments field.
These regulations, which include the Regulations for Licensing and Registration, Governance, Internal Control, and Fit and Proper Criteria, apply to payment system operators and payment service providers. The regulations are in accordance with the Central Bank and Banking Sector Law No. 194 of 2020.
The Regulations for payment institutions emphasize the importance of an effective internal control system, including internal audit, compliance, and risk management. Key officials of payment institutions are required to meet the Fit and Proper Criteria, which outline essential requirements such as relevant expertise, competence, credibility, integrity, good reputation, and the avoidance of conflicts of interest.
The Fit and Proper Criteria for chairpersons, board members, and executive directors of payment institutions have also been issued by the CBE. The Criteria specify the nomination procedures to obtain the CBE's approval before appointing key officials.
The internal control functions must be independent and provided with the necessary resources and human talent. Payments institutions have one year from the date of the issuance of the Fit and Proper Criteria to comply with the requirements.
The regulations define the duties and responsibilities of each party in the payment institution. They also provide guidelines for the composition of the board of directors and its sub-committees, specifying the frequency of meetings for these bodies.
The regulations outline the basis for monitoring the institution's performance and ensuring its stability. They also govern the relationships among a payment institution's board of directors, senior management, and other stakeholders.
Existing payment institutions must regularize their situations and apply for a license from the CBE within one year from the date of issuance, concluding in June 2026. The regulations issued by the CBE are intended to provide secure and efficient payment services to users in Egypt.
It is worth noting that the "Rules for the Licensing and Registration of Payment System Operators and Payment Service Providers" were issued by the Central Bank of Russia in June 2025. These regulations may serve as a reference for the CBE's efforts to regulate the electronic payments sector in Egypt.
In conclusion, the new regulations issued by the Central Bank of Egypt are a significant step towards enhancing the security and efficiency of electronic payments in Egypt. By ensuring compliance with these regulations, payment institutions can contribute to a more secure and efficient electronic payments ecosystem in the country.
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