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

The Chamber of Deputies, during today’s plenary session, approved, in principle, a bill presented by the government on the issuance of a law that regulates and develops the use of financial technology in non-banking financial activities.

The purpose of the bill is to promote the use of the Public Finance Control Authority as a supervisory authority for entities that engage in financial activities with modern and innovative non-banking technology in order to facilitate their oversight function by part of the parties subject to them in terms of compliance with the rules of transparency and corporate governance, and the protection of traders in non-bank financial markets and the adoption of modern and innovative technological tools to facilitate dealing with the sector non-bank financial in the field of the use of financial technology.

Among the most prominent objectives addressed by the bill is the stipulation that the Financial Supervision Authority is the only competent administrative authority to implement the provisions of this law and take all the necessary measures to develop the use of financial technology systems. modern and innovative (FINTECH). in the areas of non-banking financial activities and provide related financial advice. And carry out the procedures to establish companies subject to the provisions of this law and grant the licenses and approvals necessary to carry out the activities stipulated in this law, in order to use financial technology to perform the supervisory function of the authority to through the collection and digital verification of data and the analysis of its indicators through programs designed for this purpose.

Added to this is the desire to use artificial intelligence mechanisms and other digital models to detect events that constitute violations of the laws that regulate non-banking financial activities.

For his part, Representative Ahmed Badawy highlighted the importance of the bill, in terms of regulating and developing the use of financial technology in non-banking financial activities, promoting the investment climate in Egypt and enhancing the role of financial institutions. emerging, medium, small and micro enterprises.

Badawy appreciated the effort made by the Financial Superintendence in the preparation and presentation of the bill, noting that, as a commission, it carried out an extensive study of it with representatives of institutions and financial and non-banking banks, as well as representatives of the technology sector. of information and communications.

The bill stipulates the bill’s objectives and the role of the Financial Superintendency in promoting financial inclusion and working to broaden the beneficiary base of non-banking activities, increase their efficiency, and reduce the costs necessary to benefit from these activities. and services.

According to the project, the authority will be the only competent administrative body 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-banking financial activities. . and provide related financial advice.

The bill granted it a series of competencies that will allow it to achieve its objectives, among which the processing of the procedures for the incorporation of companies subject to the provisions of this law stands out, granting the necessary licenses and approvals for the development of activities. provided for in this law. , and the use of technological applications to ensure compliance with the laws and regulations established in a way that facilitates the establishment of the authority Its supervisory function and the entities subject to it in terms of compliance with standards of transparency and governance, protecting to operators in non-bank financial markets. and the adoption of modern and innovative technological tools to facilitate dealing with the non-bank financial sector in the use of financial technology.

This is in addition to the supervision and control of companies and entities subject to the provisions of this law, and the receipt of complaints submitted by interest groups of those who deal with companies engaged in non-banking financial activities that use financial technology, for Violate the provisions of this law or the decisions issued in compliance with it.