The Central Bank of Egypt has issued a fresh package of governance and internal control rules, alongside fit and proper criteria for senior appointees at payment system operators and payment service providers. The move targets safer, more efficient electronic payments while tightening oversight of who steers these institutions. The framework sits under Egypt’s Central Bank and Banking Sector Law No. 194 of 2020 and reflects the regulator’s push to keep pace with a fast-evolving market.
Scope and legal basis
The regulations cover the full spectrum of non-bank payment institutions, setting principles for how boards, executive teams, and stakeholders should interact and be held to account. They are explicitly grounded in the Banking Law and are designed to reinforce stability, performance monitoring, and transparency inside payment firms. The Central Bank framed the package as part of a broader agenda to foster a resilient digital payments ecosystem for users across Egypt.
Board governance and internal control expectations
The rulebook spells out how boards should be composed, how often they meet, and how their sub-committees function, bringing greater structure to oversight. It elevates internal control by insisting on independent and properly resourced audit, compliance, and risk management functions. Institutions are expected to provide these teams with the people and tools needed to operate effectively, not simply name them on an organogram.
Fit and proper thresholds and nomination oversight
Alongside governance mechanics, the Central Bank has set minimum fitness and propriety thresholds for chairpersons, directors, and executive leaders. Criteria span experience, competence, credibility, integrity, reputation, and clear rules to avoid conflicts of interest. Appointments require prior regulatory approval, and firms have up to one year from issuance to align with the new requirements.
Link to the June licensing framework
The governance package lands on top of the licensing and registration rules published in June 2025, which gave existing market players a 12-month transition to regularize their status. Those licensing rules introduced prior-approval steps, set capital thresholds by provider category, and required an irrevocable financial guarantee to reinforce prudence. The transition window for licensing ends in June 2026, making the new governance standards a timely companion to the sector’s relicensing cycle.
What changes for operators and providers
For boards and CEOs, the immediate shift is from “principles on paper” to demonstrable governance practices that stand up to supervisory scrutiny. That means cleaner role definitions, independent control functions with real budget and staff, and nomination files that evidence integrity and capability. Firms preparing licensing dossiers now need to ensure these governance artifacts are consistent across board charters, committee mandates, and risk frameworks.
Market implications
Tighter governance generally lowers operational and conduct risk, which supports consumer protection and investor confidence in payment rails. Legal analyses of the June framework also highlight alignment with international norms such as the Principles for Financial Market Infrastructures, signaling convergence with global best practice. Taken together, the licensing and governance tracks set clearer guardrails for scale, partnerships, and cross-border participation in Egypt’s payments economy.
Timeline and next steps
From now, institutions should map gaps against the new rulebook, prioritize board and control-function upgrades, and schedule nominations for timely Central Bank approval. Compliance teams will need to synchronize governance deliverables with licensing milestones, including any capital, guarantee, and documentation updates. With the licensing transition finishing in June 2026, the next twelve months are the execution window to lock in governance, controls, and leadership fit.
Egypt’s payments regulator is tightening the screws where it matters most: who runs payment institutions and how they are governed day to day. By pairing robust governance with a structured licensing regime, the Central Bank is aiming for an industry that innovates without sacrificing resilience or trust. The message to operators and providers is clear and actionable, and the clock to deliver has already started.