The Financial Regulatory Authority (FRA) in Egypt has issued a circular mandating non-bank financial institutions to update their customer identification and identity verification forms. This move is in line with the revised Due Diligence Procedures for Customers of Financial Institutions Subject to the FRA’s Supervision, issued by the Anti-Money Laundering and Terrorist Financing Unit last September. The updated forms must consider customers requiring special care, including persons with disabilities, illiterate individuals, and the elderly.
The FRA's circular, numbered 8 of 2026, requires institutions to update their policy and procedure manuals and internal control systems to comply with the new Due Diligence Procedures. All institutions must make necessary amendments to the forms customers use to apply for services and products. They must also submit the revised versions alongside their annual periodic report on anti-money laundering and terrorist financing activities for 2026 by January 31, 2027.
Islam Azzam, Chairperson of the FRA, stated that the new circular aims to accelerate the implementation of the latest requirements governing the anti-money laundering and terrorist financing framework. The goal is to facilitate transactions, ensure that applicable rules cover all customer categories, verify data reliability, and strengthen institutions' internal systems. Azzam reaffirmed his commitment to enhancing anti-money laundering and terrorist financing controls across non-bank financial activities.
The FRA Chairperson also referenced Circular No. 5 of 2026, issued last September, which required institutions operating in the capital market, insurance, and non-bank financing sectors to comply with the updated Due Diligence Procedures. This requirement is linked to the FRA's recent decisions to develop a digital framework for verifying customer data and identities in consumer finance and medium, small, and micro-enterprise financing activities.
Hamdy Badawy, Assistant to the FRA Chairperson, emphasized the need for companies to develop regulatory, governance, and risk management frameworks. He stressed that the Due Diligence Procedures should be widely circulated among employees and that internal policies should align with national anti-money laundering and terrorist financing requirements.
The FRA recently hosted a meeting with representatives of institutions under its supervision to strengthen efforts to combat money laundering risks. The meeting aimed to ensure the early detection of such risks and included members of the Research and Strategic Analysis Department at the Anti-Money Laundering and Terrorist Financing Unit.
The FRA's move reflects its commitment to ensuring that institutions under its supervision update their policy and procedure manuals and internal control systems. The updated customer identification and verification forms will help prevent money laundering and terrorist financing across non-bank financial activities in Egypt.
Key points
- The FRA requires non-bank financial institutions to update customer identification and verification forms.
- The updated forms must consider customers requiring special care, including persons with disabilities and the elderly.
- Institutions must comply with the updated Due Diligence Procedures and submit revised forms by January 31, 2027.
