CBE Issues New Governance and Internal Control Regulations for Egypt’s Payment Institutions

In light of the efforts exerted to align with the rapid developments in the electronic payments field and to provide secure and efficient payment services to users in Egypt, the Central Bank of Egypt (CBE)  has issued Regulations on Governance, Internal Control, and Fit and Proper Criteria for key officials, which payment institutions (i.e. payment system operators and payment service providers) are required to comply with, pursuant to the provisions of the Central Bank and Banking Sector Law No. 194 of 2020.

The Governance and Internal Control Regulations set out the principles governing the relations among the payment institution’s board of directors, senior management, and other stakeholders. Moreover, they define the duties and responsibilities of each party, as well as basis for monitoring the institution’s performance and ensuring its stability. The Regulations also provide guidelines for the composition of the board of directors and its sub-committees, in addition to the frequency of their meetings.

Furthermore, the Regulations highlight the importance of establishing an effective internal control system within these institutions, ensuring the independence of the internal control functions, namely internal audit, compliance, and risk management. They also emphasize the necessity of providing these functions with the required resources and human talent, empowering them to fulfill their responsibilities effectively.

In the same context, the CBE has issued the Fit and Proper Criteria for key officials of payment institutions, outlining the essential minimum requirements related to fitness and propriety of the chairpersons, board members, and executive directors of these institutions. These include relevant expertise, competence, credibility, integrity, good reputation, and the avoidance of conflicts of interest. The Criteria also specify the nomination procedures to obtain the CBE’s approval before appointing key officials. Payments institutions should comply with these requirements within one year from the date of their issuance.

Notably, in June 2025, the CBE issued the “Rules for Licensing and Registration of Payment System Operators and Payment Service Providers,” which include transitional provisions that require existing payment institutions to regularize their situations and apply for a license from the CBE within one year from the date of issuance, concluding in June 2026.