Egypt’s Financial Regulatory Authority (FRA) has implemented new rules regarding the use of financial technology in Non-Banking Financial Services and Activities (NBFSA), with a particular focus on digital identity and biometric verification.
Under Decree No. 140, a ‘Digital Identification Process’ is established, mandating the use of biometrics in fintech interactions with NBFSA entities. This process requires individuals to be verified based on something they know, something they have, and their biometrics, such as face biometrics and fingerprints. Transactions are categorized into low-risk, medium-risk, and high-risk, each requiring a different combination of components for verification.
Additionally, Decree No. 139 outlines technological infrastructure requirements for NBFSA entities adopting fintech, including database servers and customer service centers. Decree No. 141, meanwhile, establishes an Outsourcing Registry for companies providing fintech outsourcing services, mandating registration and adherence to technological and insurance requirements.
The new regulations come as a response to the growing adoption of financial technology and aim to strengthen the security and efficiency of fintech interactions in Egypt. By requiring the use of biometrics and ensuring proper infrastructure and registration for fintech service providers, the FRA aims to enhance digital identity verification processes in the country’s financial sector.
Source: Clyde & Co.
July 27, 2023 – by the Mobile ID World Editorial Team