The draft law on organizing and developing the use of financial technology in non-banking financial activities aims at enhancing financial inclusion, working to expand the base of beneficiaries of non-banking financial activities, raising their efficiency, and reducing the costs necessary to benefit from those activities and services. "The seventh day" publishes the most prominent 11 items Of the bill, which are:
1- Stating that the Financial Supervisory Authority is the only competent administrative authority to apply the provisions of this law, and to take all necessary measures to promote and develop the use of modern and innovative financial technology systems (FinTech) in any of the areas of non-banking financial activities, and to provide related financial advice, And that, in order to achieve the objectives of this law, it may take measures to establish companies subject to the provisions of this law, and to grant the necessary licenses and approvals to carry out the activities stipulated in this law.
The conditions of incorporation and licensing have, of course, concerned that the company has the equipment, technological infrastructure, information systems, means of protection and insurance necessary to carry out the activity, in accordance with the requirements set by the authority, in addition to the necessity of determining the structure of direct and indirect ownership and the parties associated with it specifically in order to be able to identify the owner Real.
2- The companies and entities that have obtained a license from the Authority at the present time to engage in any of the non-banking financial activities, to carry out the licensed activities using some areas of digital financial technology, either by themselves or through a third party among those registered in a register prepared for this purpose. To undertake some tasks or activities on its behalf, provided that this is according to an outsourcing agreement concluded between them in this regard, provided that if the companies or the aforementioned entities carry out the activity by themselves or through outsourcing, the project requires obtaining the approval of the Authority for that, according to the fact that These companies and entities have a license, of course, to practice the activity in the traditional way, provided that this is in accordance with the conditions, controls and procedures issued by a decision of the Authority’s Board of Directors.
3- Establishing a register in the authority to register the parties willing to provide the outsourcing services referred to in the previous clause, with the authority’s board of directors setting the controls for registration and delisting in the register.
4- Providing for some forms for electronic applications in the field of non-banking financial activities that may be licensed by the Authority to practice them, and which include; Smart financial advisor «Robo Advisory», microfinance «Nano Finance», insurance technology, and consumer finance technology, while allowing the Board of Directors of the Authority to approve other electronic applications in accordance with the standards and powers that it sets in this regard.
5- The stipulation that the authority, either by itself or in partnership with others, or by undertaking to do so to one of the competent authorities, to establish a regulatory laboratory for applications that allows companies and bodies addressed to the provisions of the project to test and test innovative financial technology applications in it, as a preliminary and experimental phase before presenting it to clients. Provided that this is done under the supervision and control of the Authority.
6- Using financial technology in the performance of the supervisory role of the authority, by digitally collecting data, verifying it and analyzing its indicators through programs prepared for this purpose, in addition to ensuring the use of artificial intelligence mechanisms and other digital models to reveal facts that constitute violations of laws regulating financial activities other than Banking, suspicion of money laundering, and achieving early warning of risks related to liquidity, credit, or other matters related to financial stability.
7- Providing for the authority’s board of directors to set controls for verifying digital identity and controls for digital contracts for entities that use financial technology to engage in non-banking financial activities, taking into account the provisions of Law No. (15) of 2004 regulating electronic signature, establishing the Information Technology Industry Development Authority, as well as The stipulation that the data included in the electronic means and media used by companies or entities subject to the provisions of this law shall have the authenticity of official documents in evidence.
8- Laying down some administrative measures that the Authority’s Board of Directors may take in the event that companies wishing to engage in non-banking financial activities, based on digital financial technology techniques, violate the provisions of the project or the provisions of the Authority’s Board of Directors ’decisions issued in implementation thereof, with the implementation of the measures mentioned in the laws regulating financial activities other than Banking in the matter of companies and entities that will obtain approval from the Authority in accordance with the provisions of the project, to carry out their licensed activities, using some areas of digital financial technology, while allowing the Authority’s Board of Directors to revoke the approval issued to these companies or entities.
9- Establish grievance committees to examine grievances submitted against administrative decisions issued in implementation of the provisions of the law.
10- Putting in place some criminal penalties in case of violating the provisions of the law or the decisions issued for its implementation.
11- Granting those addressed to the provisions of the draft a period of 6 months to reconcile their situation from the date of the law’s implementation upon its issuance, while allowing the Board of Directors of the Financial Supervision Authority, by a decision issued by it, to extend the period of reconciling conditions stipulated in the previous paragraph for a period or other similar periods not exceeding in total two years.
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