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The Law regulating and developing the use of financial technology (“FinTech”) in non-banking financial activities (the “Law”) has finally seen the light by its adoption and publication on 08 February 2022.

The Law is a significant step in a long chain of modernization of the legislative infrastructure regulating the financial technology sector. This legislations chain, starting with the Anti-Cyber and Information Technology Crimes Law in 2018, Cashless payment methods Law in 2019, Personal Data Protection Law in 2020, and finally the New CBE Law in 202, aims to accomplish the Digitization Strategy in Egypt Vision 2030.

It is worth mentioning that the Law is considered the first to expressively say and approbate the use of Artificial Intelligence (“AI”) in Egyptian legislation.

The Law mentioned the concerned entities as “companies and entities engaged or wishing to engage in Non-Banking Financial activities by using FinTech.” This alert aims to highlight key provisions and important stipulations of the Law and establish a complete guide to help analyze and apply its procedures and objectives.

Concerned Entities and Compliance Period

The FinTech used in such activities is also defined as a “mechanism using modern and innovative technology in the non-banking financial sector in order to support and develop the above-mentioned activities and services via digital applications, programs, platforms, e-register or AI”.

Furthermore, the Law stipulates that FRA is considered the only competent administrative authority to supervise the application of its provisions. In pursuing such an objective, it can take all necessary procedures to support and develop modern and innovative FinTech in all non-banking financial activities.

The FRA is competent to receive complaints from users and dealers with companies and entities engaged in FinTech activities in case of Law provisions or decisions’ violation, noting that the complaint shall receive a reply within a month from its filling.

Further decisions shall regulate complaints procedures, examine and notification of the final decision.

A special provision is stipulated regarding the respect of Data Protection Law no.151/2020 by actors, licensed entities, their managers, and counsels regarding the confidentiality of clients’ information. In addition, the law introduced the revolutionary concept of electronic approval to share data supplementing the tools available under the Data Protection Law no.151/2020.

An escalation of prerogatives is accorded to the FRA in case of Law provisions or decisions’ violation, license’s condition missed, or if licensed companies act against market stability or shareholders’ rights. In such case, the FRA can undertake the following sanctions:

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