In light of the efforts exerted to align with the rapid developments in the electronic payments field and to provide secure and efficient payment services to users in Egypt, the Central Bank of Egypt CBE has issued Regulations on Governance, Internal Control, and Fit and Proper Criteria for key officials, which payment institutions i.e. payment system operators and payment service providers are required to comply with, pursuant to the provisions of the Central Bank and Banking Sector Law No. 194 of 2020.
The Governance and Internal Control Regulations set out the principles governing the relations among the payment institution's board of directors, senior management, and other stakeholders. Moreover, they define the duties and responsibilities of each party, as well as basis for monitoring the institution's performance and ensuring its stability. The Regulations also provide guidelines for the composition of the board of directors and its sub-committees, in addition to the frequency of their meetings.
Furthermore, the Regulations highlight the importance of establishing an effective internal control system within these institutions, ensuring the independence of the internal control functions, namely internal audit, compliance, and risk management. They also emphasize the necessity of providing these functions with the required resources and human talent, empowering them to fulfill their responsibilities effectively.
