The Central Bank of Egypt (CBE) has introduced new governance and internal control regulations, alongside fit and proper criteria for key officials of payment system operators and service providers. These guidelines, which align with the Central Bank and Banking Sector Law No. 194 of 2020, are part of the CBE’s efforts to enhance the governance framework and support the continued growth of Egypt’s electronic payments ecosystem.
According to a CBE statement, the new regulations set out the governance structure between the boards of directors, executive management, and other stakeholders of payment institutions. They define the responsibilities of key officials, as well as principles for supervision, stability, and performance oversight. The guidelines also provide specifications for board composition, meeting frequency, and sub-committee roles.
The CBE stressed the importance of maintaining a strong internal control system, ensuring that functions like internal audit, compliance, and risk management are independent and well-resourced. Institutions must allocate the necessary personnel to support these crucial departments effectively.
In addition, the regulations outline strict fitness and propriety criteria for key officials, including board members, chairpersons, and executive directors. These individuals must meet minimum standards for competence, integrity, reputation, and avoid conflicts of interest. The CBE also requires that all such appointments be approved in advance, with compliance mandated within one year.
These new regulations follow the CBE’s June 2025 issuance of licensing and registration rules for payment institutions, which require existing operators to regularize their status by June 2026.
