Arab Finance: The Authority’s Board of Directors issued Resolution No. 186 of 2024 obligating insurance companies, companies and licensees Practicing non-banking financial activities By using financial technology, companies registered in the outsourcing services register in the areas of financial technology to practice non-banking financial activities, by inquiring about the validity of the ownership data of the mobile phone number of their customers, when concluding or renewing the contract with them as one of the procedures for verifying the identity of customers, through the electronic link system between… Authority and the National Telecommunications Regulatory Authority.
The decision of the Authority’s Board of Directors stipulates that Egyptian natural persons shall be included in the decision when concluding contracts with entities licensed to practice non-banking financial activities using financial technology, insurance companies, and companies registered in outsourcing records in the areas of financial technology to practice non-banking financial activities, as follows: A set of procedures aimed at verifying the identity of customers. The procedures for verifying the customer’s identity aim to support digital transformation and financial inclusion efforts, to which the Authority attaches utmost importance, and which would enhance the safety and validity of transactions and thus protect the rights of all dealing parties.
The decision is consistent with the vision of the Financial Supervisory Authority and the Egyptian state regarding accelerating financial inclusion and disciplined digital transformation, in a way that serves the non-banking financial sector in enhancing its role in the national economy, by providing investment, financing and insurance solutions to achieve higher economic growth rates and rich jobs.
The decision is based on the Authority’s Board of Directors Resolution No. 140 of 2023 regarding digital identity, digital contracts, the digital registry, and areas of using financial technology to practice non-banking financial activities and compliance requirements, in addition to the Authority’s Board of Directors Resolution No. 141 of 2023 regarding the outsourcing record in the areas of financial technology to practice financial activities. Non-banking.
The verification process takes place after non-banking financial institutions pay for the services, and through the electronic link system concluded between the Financial Supervision Authority and the National Telecommunications Regulatory Authority.
Verification is attributed to building a sound database aimed at protecting companies and helping them provide their non-banking financial services in a controlled manner, using various areas of financial technology, namely electronic identification, verification and authentication, electronic identification of the customer (eKYC), and concluding electronic contracts (eContracts) for non-banking financial products. Recording, preserving and retrieving digital records electronically.
According to the decision, the parties to be addressed are given a period of two months from the date of implementation of the decision. To ensure the reconciliation of their conditions, protect the rights of all customers, and provide easy and convenient services for the non-banking financial sector, while creating the appropriate environment to stimulate investment and financing for individuals and institutions operating in the non-banking financial sector.
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