The House of Representatives, during the plenary session held today, approved in-principle a draft law submitted by the government regarding issuance of legislation to regulate and develop the use of fintech in non-banking financial activities.
The draft law aims to promote the use of public authority for control of finances as a supervisory authority for non-banking entities engaged in modern technology financial activities to facilitate monitoring of their role by the parties. Transparency and compliance with corporate governance standards, and safety of dealers in non-bank financial markets and adoption of technical tools Modern and innovative in using financial technology to facilitate handling of the non-banking financial sector.
One of the most prominent objectives addressed by the draft law is to stipulate that the Financial Supervisory Authority is the sole administrative authority competent to enforce the provisions of this law and to undertake all necessary actions to develop the use of modern and innovative financial technology systems (Fintech). takes measures. To provide financial advice in and related areas of non-bank financial activities. and subject to the provisions of this law granting necessary licenses and approvals for carrying out the activities set out in this law for companies to take up and use processes set up in this law digitally through programs designed for this purpose Financial technology to perform the supervisory role of the authority through collecting and verifying data and analyzing its indicators.
This comes in addition to the eagerness to use artificial intelligence mechanisms and other digital models to find facts that violate laws governing non-banking financial activities.
For his part, Representative Ahmed Badawi drafted legislation regarding regulating and developing the use of fintech in non-bank financial activities, encouraging the investment climate in Egypt, and enhancing the role of emerging, medium, small and stressed the importance of micro companies.
Badawi valued the efforts made by the Financial Supervisory Authority in the preparation and presentation of the draft legislation, noting that as a committee, it has a comprehensive framework of non-banking and financial banking and institutions, as well as representatives from were studied. Information and communication technology sector.
Draft Law The objectives of the draft law and the role of the Financial Supervisory Authority in working towards promoting financial inclusion and expanding the beneficiaries base of non-banking activities, enhancing their efficiency and reducing the costs required to benefit from these activities determines. Services.
In accordance with the project, the Authority shall be the sole administrative body competent to implement the provisions of this Act and to take all necessary measures to promote and develop the use of modern and innovative fintech systems in any sphere of non-banking financial activities . and to provide related financial advice.
The draft law provided a number of competencies to enable it to achieve its objectives, the most important of which was to lay down the procedures for setting up companies subject to the provisions of this law, the licenses required to carry out the activities set out in this law. and grant approval. , and using technical applications to ensure compliance with established laws and regulations that facilitate the establishment of the Authority, its supervisory role and the entities under it, with respect to compliance with standards of transparency and governance, in the non-banking financial markets Adopting modern and innovative technological tools to protect dealers in the U.S. and to facilitate dealing with the non-bank financial sector in the use of fintech.
This comes in addition to the supervision and control of companies and entities subject to the provisions of this law, and complaints submitted by stakeholders from those dealing with companies engaged in non-banking financial activities by using financial technology in contravention of the provisions of this law. Receiving or decisions issued in its implementation.