• The Central Bank of Egypt (CBE) has issued new licensing rules for payment providers operating in Egypt, whether based locally or abroad.
• Regulations cover services like money transfers, remittances, account withdrawals, and electronic payments within Egypt’s financial ecosystem.
• Existing institutions have 12 months to apply for a license and continue operations while awaiting compliance decisions.

CBE

The Central Bank of Egypt (CBE) has issued regulations for the licensing and regulation of payment system operations and payment service providers This is in accordance with the provisions of Law No.194 of 2020 which regulates the CBE and the banking system. 

These new regulations outline the conditions and procedures for licensing payment institutions. This is for institutions that offer payment services or operate payment systems for customers within Egypt based inside or outside Egypt.

This will cover all activities related to payment services such as: 

• Depositing and withdrawing cash from payment accounts
• Executing payment transactions and money transfers 
• Issuing payment instruments and electronic acceptance channels 
• Sending and receiving remittances in Egyptian pounds
• Services related to the creation of payment orders
• Payment account information services.

Licensing 

These regulations will also define the requirement for obtaining prior approval and licensing for payment institutions. This includes the necessary documentation and licensing conditions. Additionally, it includes minimum capital requirements, rules for license modification, required financial guarantees, and fees for inspection, auditing, and supervision.

In this context, the Central Bank has granted existing payment institutions a transitional period of 12 months from the date these regulations were issued. During this period, it is required that existing institutions apply for a license from the CBE. Furthermore, the institutions are permitted to continue their activities until a decision is issued regarding their compliance. This will be in accordance with what is determined by the Board of Directors of the Central Bank.