Egypt's Financial Supervisory Authority, led by Dr. Islam Azzam, has issued a circular requiring non-bank financial institutions to update their customer identification and verification models. This update is based on the latest version of the "Due Diligence Procedures for Clients of Financial Institutions Subject to the Supervision of the Financial Supervisory Authority," which was issued by the Anti-Money Laundering and Terrorism Financing Unit in September. The circular, numbered 8 for the year 2026, emphasizes the need for all institutions to comply with the updated procedures.
The updated procedures require institutions to make necessary changes to their customer service request models, update their policy and procedure guides, and enhance their internal control systems. Institutions must submit their updated models and reports on their anti-money laundering activities for 2026 by January 31, 2027. The circular also emphasizes the need for institutions to consider the needs of vulnerable clients, including people with disabilities, illiterate individuals, and the elderly.
Dr. Islam Azzam stated that the new circular aims to accelerate the implementation of anti-money laundering measures and facilitate transactions while ensuring the reliability of data. He also highlighted the Authority's efforts to support the efficiency and effectiveness of anti-money laundering controls in non-bank financial activities. This move is part of a broader effort to enhance the regulatory framework for non-bank financial institutions.
The Financial Supervisory Authority has been actively working to enhance its regulatory framework. In September, the Authority issued a circular requiring institutions in the capital market, insurance, and non-bank financing sectors to comply with the updated due diligence procedures. This move is aimed at developing a digital verification system for customer data and identity.
Hamdi Badwi, Assistant Head of the Financial Supervisory Authority, emphasized the importance of developing governance and risk management frameworks within companies. He also stressed the need for comprehensive implementation of due diligence procedures and ensuring that internal policies align with national requirements for anti-money laundering and terrorism financing.
The Financial Supervisory Authority recently hosted a meeting with representatives from institutions under its supervision to discuss efforts to combat money laundering risks. The meeting aimed to enhance cooperation and discuss the implementation of due diligence procedures. The Authority is committed to working with institutions to ensure effective anti-money laundering measures.
The updated regulations reflect the Egyptian government's efforts to strengthen its anti-money laundering framework and enhance the supervision of non-bank financial institutions. The regulations are expected to improve the efficiency and effectiveness of anti-money laundering controls and contribute to a more secure financial system.
Key points
- The Financial Supervisory Authority requires non-bank financial institutions to update their customer identification and verification models by January 31, 2027.
- The updated regulations aim to enhance anti-money laundering measures and facilitate transactions while ensuring data reliability.
- The Financial Supervisory Authority is working to develop a digital verification system for customer data and identity.
