Financial Technology Act in Egypt. Prison and high fines for offenders

Articles of the financial technology law recently passed by the Egyptian parliament revealed that the law targets non-bank financial activities, as it works to broaden the beneficiary base of these assets, increase their efficiency and reduce the costs required to benefit from them. and services.

Recently, the secretary of the House of Representatives Planning and Budgeting Committee Abdel Moneim Imam said that the adoption of the Financial Technology Regulation Bill will greatly help to control the issue of the resulting imbalance in the electronic financial market. from the previous absence of the legislation, explaining, according to a note, that the law provides for the precedence of the verification of digital identity. , in addition to prison sentences and fines for offenders.

The new law should help broaden the dealer base and facilitate transactions in worldwide, also contributes to improving financial inclusion, the ability to complete transactions and transfers and their ease through media from anywhere without cost, which increases their vitality, increases efficiency and capacity and increases banking transactions Supervise all digital data through the analysis of indicators software.

Non-bank financial assets are understood to be non-bank financial markets and instruments subject to the supervision and control of the authority, including capital markets, insurance activities, real estate financing, financial leasing and factoring, medium-sized financing , small and micro enterprises and consumer finance.

As for the definition of financial technology according to law, it is the use of modern and innovative technological technologies in the non-banking financial sector to support and facilitate financial, financial and insurance activities and services through applications, programs, digital platforms, intelligence or record electronic.

The law establishes the conditions for obtaining a license to carry out non-banking financial activities using financial technology, which is included in article No. “4”, where the company’s activity is limited to the exercise of the authorized activities and the structure of direct and indirect ownership and specifically identified the related parties, and that the company is equipped with the equipment, technological infrastructures and information systems of means of protection and insurance necessary for the performance of the activity, as required by resolution of the Board of Directors of the Authority, and the Board of Directors of the Authority determines the remuneration for the authorization to exercise the activity for the company, not exceeding 50 thousand lire.

The bill referred to in article 18 punishes anyone who practices, establishes or any of the activities referred to in this law without obtaining a license or Consent, as required by this law, e in in case of reiteration, both imprisonment and fine are applied.

The law aims to use technological applications to ensure compliance with established laws and rules in in order to facilitate the control role of the authority over the subjects subject to it in about the respect of standard of transparency and governance. It also works to protect retailers in non-bank financial markets.

The law adopts modern and innovative technological tools to facilitate relations with the non-bank financial sector in the use of financial technology. It also includes the use of technological applications to digitally collect and verify data and analyze its indicators through programs designed for this purpose. Finally, the use of artificial intelligence mechanisms and other digital models to detect incidents that constitute violations of the laws governing non-banking financial activities.

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