{"id":556260,"date":"2021-10-18T04:04:57","date_gmt":"2021-10-18T04:04:57","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/"},"modified":"2021-10-18T04:04:57","modified_gmt":"2021-10-18T04:04:57","slug":"house-committee-gives-final-nod-to-proposed-fintech-law","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/","title":{"rendered":"House committee gives final nod to proposed fintech law"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-03\"><\/a><strong> The House of Representatives\u2019 CIT Committee yesterday gave final approval to a<\/strong> <strong>draft law to regulate Egypt\u2019s fintech sector<\/strong>, <a href=\"https:\/\/bit.ly\/3FUVonT\">Al Mal<\/a> reports. The proposed law would govern fintech use by non-banking financial services (NBFS) providers, as well as put the Financial Regulatory Authority in charge of overseeing the fintech space. Under the draft approved yesterday, NBFS players that want to use fintech will need to obtain approval from the FRA by submitting a standard request form, along with proof the company has sufficient capital.<\/p>\n<p><strong>The bill also mandates that the FRA set up a lab to test new fintech products<\/strong> \u2014 and that it put in place provisions for digital identification systems, as well as regulations for issuing digital contracts. The bill also reportedly covers crowdfunding, robo-advisory, nano-finance and insurtech, and introduces penalties that include imprisonment of at least six months or fines of EGP 200k-1 mn for unlicensed operators.<\/p>\n<p><strong>What\u2019s next for the law? <\/strong>It will be handed over soon, along with a committee report, to the House general assembly for a final discussion and vote, after which it can be signed into law.<\/p>\n<p><strong>Background: <\/strong>The bill \u2014 which received Cabinet approval <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/4da67185-faac-4351-a33d-5c9fc7718ddd\">last April<\/a>, and was given a preliminary nod by the house <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/30d15bee-ceda-4044-aefc-8e2c73d6ef1c\">in May<\/a> \u2014 is a bid to expand the sector\u2019s beneficiaries and promote financial inclusion by granting the Financial Regulatory Authority (FRA) the power to license and regulate NBFS businesses and fintech startups. Under the law, the FRA would have supervisory powers over the sector to ensure companies adhere to transparency and governance standards, in addition to protecting consumer rights. The FRA had drafted and approved the bill <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/0d59b8d8-cfa8-4d41-8c9e-af80e1620e1e\">last year<\/a>.<\/p>\n<hr class=\"grey-line\">\n<p><strong>ALSO FROM THE HOUSE- Some good news for the private sector: <\/strong>The House of Representatives\u2019 general assembly gave preliminary approval yesterday to proposed amendments to the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/91cf3226-5bd2-467e-bf88-05b55aad3330\">Public-Private Partnership (PPP) Act<\/a>, according to a <a href=\"http:\/\/www.parliament.gov.eg\/News_Show.aspx?frm=4157\">statement<\/a>. The entire bill was approved \u201cin principle\u201d except for article 17, which still needs further review to square it in with a recently-ratified law governing the Sovereign Fund of Egypt, whose investment mandate focuses on partnerships with the private sector, <a href=\"https:\/\/bit.ly\/30AbLGu\">Al Mal<\/a> reported yesterday.<\/p>\n<p><strong>What we know about the law: <\/strong>The proposed amendments would explicitly state that government authorities are allowed to partner with private companies on infrastructure and utility developments in sectors including transport, energy, communications, and healthcare. The House Planning Committee <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/1e481d6d-5609-4deb-8157-cde1af2d0196\">approved amendments<\/a> to the PPP Act early this year.<\/p>\n<p><strong>Other details we know about the changes:<\/strong> <a href=\"https:\/\/enterprise.press\/stories\/2019\/12\/09\/egypt-parliament-committees-approve-ppp-act-amendments-dispute-resolution-bill-8013\/\">The amendments<\/a> would cut the time to issue tenders for PPP projects and introduce new mechanisms for private sector contracting, including allowing private sector players to submit unsolicited proposals. The government would also be allowed to negotiate directly with a sole bidder without needing to take the project through the competitive bidding process. The government is looking to encourage private sector involvement in infrastructure, public services, and utility developments, particularly in the new cities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The House of Representatives\u2019 CIT Committee yesterday gave final approval to a draft law to regulate Egypt\u2019s fintech sector, Al Mal reports. The proposed law would govern fintech use by non-banking financial services (NBFS) providers, as well as put the Financial Regulatory Authority in charge of overseeing the fintech space. Under the draft approved yesterday, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7344],"tags":[72,76,183,187,595],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-556260","post","type-post","status-publish","format-standard","hentry","category-legislation-watch","tag-enterpriseam","tag-financial-regulatory-authority","tag-fintech","tag-legislation-watch","tag-non-banking-financial-services","wpautop","entry"],"acf":{"mongo_id":"3d9ae909-072f-4fc9-afe1-410336e76388","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[556251],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>House committee gives final nod to proposed fintech law - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"House committee gives final nod to proposed fintech law\" \/>\n<meta property=\"og:description\" content=\"The House of Representatives\u2019 CIT Committee yesterday gave final approval to a draft law to regulate Egypt\u2019s fintech sector, Al Mal reports. The proposed law would govern fintech use by non-banking financial services (NBFS) providers, as well as put the Financial Regulatory Authority in charge of overseeing the fintech space. Under the draft approved yesterday, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-18T04:04:57+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"House committee gives final nod to proposed fintech law\",\"datePublished\":\"2021-10-18T04:04:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/\"},\"wordCount\":489,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"Financial Regulatory Authority\",\"Fintech\",\"Legislation Watch\",\"non-banking financial services\"],\"articleSection\":[\"LEGISLATION WATCH\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/10\/18\/house-committee-gives-final-nod-to-proposed-fintech-law\/\",\"name\":\"House committee gives final nod to proposed fintech law - 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The new law would, if passed, regulate the use of fintech to deliver non-banking financial services (NBFS) in a bid to promote financial\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/11\/654.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":562426,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/24\/fras-fintech-bill-gets-preliminary-house-committee-nod\/","url_meta":{"origin":556260,"position":1},"title":"FRA\u2019s fintech bill gets preliminary house committee nod","author":"enterpriseam admin","date":"24 May 2021","format":false,"excerpt":"The House CIT Committee gave a preliminary nod yesterday to a draft law that would govern the fintech space, Masrawy reports. The new law would regulate the use of fintech to deliver non-banking financial services (NBFS) in a bid to expand the sector\u2019s beneficiaries and promote financial inclusion by granting\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/5\/206.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561441,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/07\/cabinet-approves-draft-bill-to-regulate-fintech-industry\/","url_meta":{"origin":556260,"position":2},"title":"Cabinet approves draft bill to regulate fintech industry","author":"enterpriseam admin","date":"7 April 2021","format":false,"excerpt":"The draft law that will govern the fintech space received approval from the Madbouly cabinet in its weekly meeting yesterday, cabinet said in a statement. The new law would regulate the use of fintech to deliver non-banking financial services (NBFS) in a bid to promote financial inclusion and expand the\u2026","rel":"","context":"In &quot;Cabinet watch&quot;","block_context":{"text":"Cabinet watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/cabinet-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":613136,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/09\/fintech-startups-can-now-apply-for-temporary-licenses\/","url_meta":{"origin":556260,"position":3},"title":"Fintech startups can now apply for temporary licenses","author":"enterpriseam admin","date":"9 January 2024","format":false,"excerpt":"Fintech startups will need to meet a minimum capital requirement of EGP 15 mn to be eligible for the temporary license","rel":"","context":"In &quot;Fintech&quot;","block_context":{"text":"Fintech","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/fintech\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/1\/490.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":573306,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/28\/fra-completes-first-draft-of-law-to-regulate-fintech-industry\/","url_meta":{"origin":556260,"position":4},"title":"FRA completes first draft of law to regulate fintech industry","author":"enterpriseam admin","date":"28 July 2020","format":false,"excerpt":"LEGISLATION WATCH- The Financial Regulatory Authority (FRA) has finished the first draft of a law that will govern the fintech space, and expects to draw up a final version within one month, Abdelhamid Ibrahim, FRA board member and head of the committee drafting the law, tells Al Mal. The bill\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/7\/228.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":542625,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/09\/egypt-now-has-a-regulatory-framework-for-the-fintech-industry\/","url_meta":{"origin":556260,"position":5},"title":"Egypt now has a regulatory framework for the fintech industry","author":"enterpriseam admin","date":"9 January 2022","format":false,"excerpt":"Fintech, consider yourself regulated: Legislation to regulate the fintech industry received final approval from the House of Representatives on Wednesday, according to Al Borsa. The bill, which was first drawn up by the Financial Regulatory Authority (FRA) in 2020, hands the regulator broad powers over licensing and corporate governance in\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/89.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/556260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=556260"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/556260\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/556251"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=556260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=556260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=556260"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=556260"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=556260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}