Law No. 5 of 2022 on the Use of Financial Technology in Non-Banking Financial Activities

Law No. 5 of 2022 on regulating and developing the use of financial technology in non-banking financial activities is Egypt's dedicated statute for fintech in the non-banking financial sector, administered by the Financial Regulatory Authority (FRA). It complements the Central Bank's regime for banking and payments by bringing the use of technology in non-banking financial activities, such as capital markets, insurance, mortgage finance, financial leasing, factoring, consumer finance and microfinance, within a clear legal framework. The Law is squarely a fintech instrument: it exists specifically to regulate the deployment of digital technologies in financial services, rather than to regulate those financial activities generally. It empowers the FRA to license and supervise companies that carry out, or provide the technology for, non-banking financial activities through digital channels, and to set the conditions for doing so. Key features include requirements that entities wishing to provide non-banking financial services using fintech be incorporated and licensed or approved by the FRA; the regulation of enabling technologies and infrastructure such as digital identity verification (e-KYC), electronic contracting and digital signatures, electronic records and registries, outsourcing and the use of nominees; and obligations on cybersecurity, data protection, consumer protection and AML/CFT compliance. The Law also provides the basis for the FRA's regulatory sandbox for non-banking fintech, allowing innovators to test solutions under supervision. The FRA issues implementing decisions and supervises and enforces compliance, including through licensing conditions and sanctions. As the instrument that extends fintech regulation across Egypt's non-banking financial sector, Law No. 5 of 2022 is an important complement to the CBE's payments and banking-fintech framework and is within the financial-regulator fintech perimeter.

1. 1Dedicated statute for fintech in non-banking financial activities, administered by the FRA
2. 2Entities using fintech to provide non-banking financial services must be incorporated and FRA-licensed/approved
3. 3Regulates enabling technologies: digital identity/e-KYC, e-contracting and digital signatures, electronic records and outsourcing
4. 4Cybersecurity, data-protection, consumer-protection and AML/CFT obligations
5. 5Basis for the FRA regulatory sandbox for non-banking fintech
6. 6FRA implementing decisions, supervision and enforcement (licensing conditions and sanctions)