The Egypt Financial Regulatory Authority issued a first-time framework for companies and entities that collect receivables on behalf of providers of non-banking financial activities. Decision No. 278 of 2025 establishes a specialised register at the Authority and prohibits non-banking finance firms from engaging unregistered collectors, alongside customer-notification and client data confidentiality obligations. Registration is limited to commercial companies whose purposes include receivables collection, with minimum paid-up issued capital of EGP 10 million (or equivalent in foreign currency) and shareholders’ equity of at least EGP 20 million, subject to an alternative condition for firms that do not meet the equity threshold requiring at least three years of prior activity, while equity must in all cases not be below paid-up capital. The rules add fit-and-proper requirements, mandatory FRA-specified training for executives and collection staff, an application dossier and an Authority decision timeline of up to 30 days once complete, an EGP 25,000 fee, and a three-year registration period renewable on application submitted three months before expiry. Operational requirements include prior FRA approval of contracts between financing entities and collection firms, limiting collection firms to collection-only work, restrictions on adding collected amounts to collectors’ accounts, limits on cash acceptance with approved receipts and remittance within five business days, and semi-annual reporting by both collection firms and financing firms; non-banking finance firms must also inform customers of the appointed collection firm, identity-verification methods for collectors, and contact details, and handle related complaints. Non-banking finance firms and collection providers have six months from the decision’s effective date to align their arrangements. Administrative measures for breaches by registered collection firms range from warnings and suspension of registration for up to one year to removal from the register with re-registration barred for between six months and five years, or permanent removal.
Egypt Financial Regulatory Authority 2026-01-28
Egypt Financial Regulatory Authority mandates registration and EGP 10 million capital for receivables collection firms serving non-banking finance
The Egypt Financial Regulatory Authority has introduced a framework under Decision No. 278 of 2025 for companies collecting receivables for non-banking financial activities. The framework mandates registration with the Authority, sets capital and equity requirements, and imposes operational and reporting obligations. Non-compliance can lead to penalties, including suspension or removal from the register.