Egypt Financial Regulatory Authority establishes register for non-banking finance risk assessment technology providers with EGP 10m minimum capital

Egypt Financial Regulatory Authority’s board issued a decision creating a dedicated register for companies that provide technology-based risk assessment systems for use in non-banking finance. The framework bars non-banking finance providers from using unregistered third parties for these services, while permitting them to use their own risk assessment systems if the Authority has approved them in advance. To be registered, applicants must include providing technology systems or technical solutions among their corporate purposes, have issued and paid-up capital of at least EGP 10 million (or equivalent), and have at least three years of operating history, or alternatively have shareholders’ equity of EGP 20 million or be 50% owned by a technology company with at least three years’ experience. The application must include a digital business model, the methodology and algorithms used, technical documentation of the technology infrastructure, evidence of prior work, audited financial statements signed by an auditor registered with the Authority, and proof of payment of a EGP 25,000 application review fee; the Authority will decide within 30 days once requirements are complete. Non-banking finance providers must notify the Authority before contracting with a registered firm and provide a copy of the contract; registered firms are subject to inspection access, data confidentiality, conflict-of-interest controls, and quarterly reporting, with measures for breaches ranging from warnings to suspension (up to one year) and delisting. Companies providing these technology-based risk assessment systems must regularise their position within six months of the decision taking effect.