Egypt’s FRA mandates strong data protection for licensing tech-based financial firms

Egypt’s Financial Regulatory Authority (FRA) will only grant licences to technology-based non-banking financial services companies with robust data protection systems in place, its chairman Mohamed Farid said on Monday.

Farid emphasised the importance of data security as financial technology adoption continues to grow. He highlighted the FRA’s commitment to accelerating digitisation in the financial sector, as outlined in Law No. 5 of 2022.

To ensure the integrity of financial transactions and protect customer rights, companies must implement stringent risk management frameworks and store their databases within Egypt.

Currently, four companies are authorised to provide electronic identification, contract execution, and digital record management services.

By implementing these regulations, the Egyptian regulator aims to foster a safe and secure digital financial ecosystem, promoting innovation and financial inclusion while mitigating risks.

Attribution: The Egyptian Cabinet & FRA

Subediting: Y.Yasser