Governance, Internal Control and Fit and Proper Regulations for Payment Systems Operators and Payment Service Providers (2025)

Issued by the Central Bank of Egypt (CBE) on 1 September 2025 under the Central Bank and Banking System Law No. 194 of 2020, these regulations prescribe the corporate-governance, internal-control and fit-and-proper requirements for Payment Systems Operators (PSOs) and Payment Service Providers (PSPs), complementing the CBE's June 2025 licensing and registration rules. Together they form the prudential and conduct backbone of Egypt's payment-institution regime. The regulations apply to licensed PSOs and registered PSPs and set out the governance structures these institutions must maintain, including the composition and responsibilities of the board and senior management, segregation of duties, and the establishment of effective risk-management, compliance, internal-audit and internal-control functions appropriate to the nature and scale of the business. They impose fit-and-proper criteria for key officials, including board members, executives and the holders of key control functions, covering integrity, competence, qualifications, experience and financial soundness, and they require CBE approval or non-objection for the appointment of such persons. The regulations also address conflicts of interest, accountability, outsourcing oversight, and the controls needed to manage the operational, technology and financial-crime risks inherent in digital payments. By embedding sound governance and accountable leadership in payment institutions, the regulations aim to protect customers and the integrity of the payment system. The CBE supervises compliance through reporting, review of appointments, inspection and enforcement, and may require remedial action or impose sanctions. As a key part of the post-Law 194 framework for fintech-enabled payment businesses, these regulations sit alongside the licensing rules and are essential reading for any payment institution operating in Egypt.

1. 1Corporate-governance and internal-control requirements for PSOs and PSPs under Law No. 194 of 2020
2. 2Board and senior-management composition, responsibilities and segregation of duties
3. 3Mandatory risk-management, compliance, internal-audit and internal-control functions
4. 4Fit-and-proper criteria (integrity, competence, experience, financial soundness) for key officials, with CBE approval/non-objection for appointments
5. 5Conflicts-of-interest, accountability and outsourcing-oversight controls
6. 6CBE supervision via reporting, appointment review, inspection and enforcement