The CBE said the new rules align with the provisions of Central Bank and Banking System Law No. 194 of 2020.
The regulations outline the conditions and procedures for
licensing both local and international payment institutions that offer payment
services or operate payment systems for customers within Egypt.
The scope of covered activities is broad and includes cash
deposits and withdrawals from payment accounts, execution of payment
transactions and money transfers, and the issuance of payment instruments and
electronic acceptance channels. The rules also cover sending and disbursing
remittances in Egyptian Pounds, payment initiation services, and payment
account information services.
The new framework specifies requirements for obtaining prior
approval and licensing, including necessary documentation, minimum capital
requirements, rules for amending licenses, financial guarantees, and fees for
examination, inspection, and supervision.
To facilitate a smooth transition, the CBE has granted
existing payment institutions a 12-month grace period from the date of the new
rules' issuance. During this period, these institutions must apply for a
license from the CBE and are permitted to continue operations until a decision
is made regarding their compliance by the CBE's Board of Directors.
Furthermore, the regulations set conditions for licensing foreign payment institutions providing services to Egyptian customers, stipulating they must be licensed by the equivalent regulatory authority in their country of origin. The rules also define the provisions governing the activities of these institutions within Egypt.