RegTech and compliance management
RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.
Attitude of the country towards RegTech-services
The climate towards RegTech services in Egypt is positive. The market is witnessing a shift in regulation policies, is becoming more flexible and is accepting change. The number of FinTechs operating in Egypt has seen growth in the last two years. We’re seeing a large number of entrepreneurs leaving their jobs and taking on different challenges in this space. We’re seeing the Evolution of Electronic Know Your Customer (eKYC) and a rising number of RegTech Start-ups providing RegTech solutions.
Obligations and requirements to provide RegTech-services
Till now, there is no legal framework for RegTech companies to operate in. Therefore, there is no license or specific legal requirements that the companies should follow in order to obtain a license or work in this field.
However, it should be noted that, the new non-banking FinTech law regulated and stated a few requirements in order to obtain licenses to work in the FinTech field. It must be noted that FRA has the discretion to add on other sub-sectors within the same realm. In conclusion, FRA may add some rules regarding license requirements in order to operate in RegTech.
Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area
Besides being obliged to protect and preserve the strict confidentiality of their clients’ personal data, the entities shall not disclose any information without obtaining the consent of the client. RegTech companies must comply with all Anti-money Laundering (AML) laws and regulations.
Market size for RegTech-services and biggest companies in this business area
Currently, no reliable statistics are available for Egypt on how big the RegTech market is because it is newly introduced to the Egyptian market.
The most important products that the RegTech market in Egypt is focused on are eKYC, customer authentication procedures, fraudulent activities, and money laundering detection through deep learning algorithms.
Most of the RegTech companies in the Egyptian market are Start-ups. The following companies can be considered to be the well-known when it comes to RegTech: Valify, Know Me, Verified, Digified and PASSID.
Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area