The Central Bank of Egypt has issued Regulations on Governance and Internal Control, alongside Fit and Proper Criteria for key officials, that payment institutions including payment system operators and payment service providers must comply with under the Central Bank and Banking Sector Law No. 194 of 2020. The package sets governance expectations for boards and senior management, requires independent internal control functions, and introduces minimum suitability standards and prior approval procedures for senior appointments. The governance and internal control rules define relationships, duties and responsibilities across the board of directors, senior management and other stakeholders, and set a framework for monitoring performance and maintaining institutional stability. They also provide guidance on board and board sub-committee composition and meeting frequency, and require an effective internal control system with independent internal audit, compliance and risk management functions supported by adequate resources and staffing. The fit and proper criteria apply to chairpersons, board members and executive directors, covering requirements such as expertise, competence, credibility, integrity, good reputation and avoidance of conflicts of interest, and specify nomination procedures requiring Central Bank of Egypt approval before appointment; payment institutions have one year from issuance to comply. The update sits alongside the Central Bank of Egypt’s June 2025 Rules for Licensing and Registration of Payment System Operators and Payment Service Providers, which include transitional provisions requiring existing payment institutions to regularize their position and apply for a licence within one year, ending in June 2026.
Central Bank of Egypt 2025-09-01
Central Bank of Egypt issues governance, internal control and fit and proper requirements for payment institutions
The Central Bank of Egypt has issued new Regulations on Governance and Internal Control, and Fit and Proper Criteria for key officials under the Central Bank and Banking Sector Law No. 194 of 2020. These regulations establish governance expectations, require independent internal control functions, and set suitability standards for senior appointments, with Central Bank approval needed prior to appointments. The update complements the June 2025 Rules for Licensing and Registration of Payment System Operators and Payment Service Providers, mandating existing institutions to regularize their status by June 2026.