Parliament approves in principle the law on financial technology in non-banking activities

The House of Representatives, during the plenary session held today, approved, in principle, a draft law submitted by the government regarding the issuance of a law regulating and developing the use of financial technology in non-banking financial activities.

The draft law aims to promote the use of the Public Authority for Control of Finance as a supervisory authority to entities engaged in financial activities of non-banking modern technology and innovative in order to facilitate its role oversight by the parties subject to them in terms of compliance with transparency and corporate governance standards, and the protection of dealers in non-bank financial markets and the adoption of technological tools Modern and innovative to facilitate dealing with the non-banking financial sector in the field of using financial technology.

Among the most prominent objectives addressed by the draft law is the stipulation that the Financial Supervisory Authority is the only administrative authority competent to implement the provisions of this law and take all necessary measures to develop the use of modern and innovative financial technology systems (FINTECH) in the fields of non-bank financial activities and provide related financial advice. And taking the procedures for establishing companies subject to the provisions of this law and granting the necessary licenses and approvals to carry out the activities stipulated in this law, in order to use financial technology in performing the supervisory role of the authority through digitally collecting and verifying data and analyzing its indicators through programs designed for this purpose.

This comes in addition to the keenness to use artificial intelligence mechanisms and other digital models to detect facts that constitute violations of laws regulating non-banking financial activities.

For his part, Representative Ahmed Badawy stressed the importance of the draft law, with regard to regulating and developing the use of financial technology in non-bank financial activities, encouraging the investment climate in Egypt and enhancing the role of emerging, medium, small and micro companies.

Badawy valued the effort made by the Financial Supervisory Authority in preparing and presenting the draft law, noting that it, as a committee, conducted an extensive study of it with representatives of non-banking and financial banking and institutions, as well as representatives of the information and communication technology sector.

The draft law stipulated the objectives of the draft law and the role of the Financial Supervisory Authority in promoting financial inclusion and working to expand the base of beneficiaries of non-banking activities, raise their efficiency and reduce the costs necessary to benefit from these activities and services.

According to the project, the authority will be the administrative authority exclusively competent to implement the provisions of this law and take all necessary measures to promote and develop the use of modern and innovative financial technology systems in any of the areas of non-bank financial activities and to provide related financial advice.

The draft law granted it a number of competencies to enable it to achieve its objectives, foremost among which is taking the procedures for establishing companies subject to the provisions of this law, granting the necessary licenses and approvals to carry out the activities stipulated in this law, and using technological applications to ensure compliance with the established laws and rules in a manner that facilitates the establishment of the authority Its supervisory role and the entities subject to it regarding compliance with standards of transparency and governance, protecting dealers in non-banking financial markets and adopting modern and innovative technological tools to facilitate dealing with the non-bank financial sector in the use of financial technology.

This comes in addition to supervising and controlling companies and entities subject to the provisions of this law and receiving complaints submitted by stakeholders from those who deal with companies engaged in non-banking financial activities using financial technology, for violating the provisions of this law or the decisions issued in implementation of it.