Egypt’s FRA Mandates Financing Companies to Implement OTP Verification

Licensed finance providers have two months to introduce OTP identity checks when contracts are signed and funds are used.

Egypt’s Financial Regulatory Authority has ordered licensed consumer finance providers and micro, small and medium enterprise finance companies, associations and institutions to introduce one-time password verification for customers within two months.

Under the new requirement, an OTP must be sent to the customer’s registered mobile number when a financing contract is signed and again when the financing is used or drawn down. Providers must record and retain the code as evidence that the customer’s identity was verified.

The decision was issued by FRA Chairman Dr Islam Azzam under Decision No. 2735 of 2026, implementing amendments approved by the authority’s board under Decision No. 133 of 2026 in July.

Licensed entities must complete the necessary technical and organisational preparations and notify the FRA that implementation has begun within the two-month deadline.

The authority said the measure is intended to strengthen identity verification and help detect impersonation attempts, inaccurate personal information and other practices that could affect customers’ creditworthiness.

The OTP requirement forms part of a broader framework governing digital onboarding and risk checks across non-bank financial services. Companies using financial technology, as well as fintech outsourcing providers under FRA supervision, are already required to verify customer information through national ID data and mobile number ownership.

They must also screen customers against anti-money laundering and interdiction lists under Board Decision No. 186 of 2024 and subsequent amendments, including Decision No. 133 of 2026.