Financial Crime World

Data Protection and Cybersecurity Regulations for Fintech Businesses in Egypt

Overview

Egypt has implemented various regulations to ensure the protection of personal data and cybersecurity for fintech businesses operating within its jurisdiction. These regulations are essential for fintech companies to comply with, as they can face severe consequences for non-compliance.

Data Protection Law

The Data Protection Law imposes several requirements on controllers, collectors, or processors of personal data. According to Article 15, certain circumstances may permit the transfer of state interest-protected data outside Egypt without meeting the condition set forth in Article 14. Additionally, Article 16 provides an option for controllers or processors to transfer data to another controller or processor if specific conditions are met.

Sanctions for Non-Compliance

The Data Protection Law imposes severe sanctions for failing to comply with its provisions. Fines ranging from EGP 100,000 to EGP 1 million may be imposed on controllers, collectors, or processors that collect, process, disclose, or transmit personal data without authorization or consent. In more severe cases, imprisonment and fines may be imposed if the offense is committed for personal gain or to harm individuals.

Cybersecurity Laws

Egypt’s Cybercrimes Law No. 175 of 2018 primarily regulates content posted on websites and activities provided by internet service providers. Fintech businesses operating in Egypt are subject to additional regulations and requirements to ensure the security and integrity of their systems and data.

AML and Financial Crime Requirements

Fintech businesses operating in Egypt must comply with Anti-Money Laundering (AML) and counter-terrorism financing controls set forth by the Financial Regulatory Authority. These requirements include:

  • Reporting suspicious transactions
  • Maintaining accurate records
  • Implementing know-your-customer procedures

Other Regulatory Regimes

Law No. 5 of 2022 defines fintech as a mechanism that uses modern technology to support financial services and activities. This law regulates the establishment and licensing process of fintech companies operating in Egypt’s non-banking financial sector.

Accessing Talent

Egypt’s labor laws heavily regulate the hiring and dismissal of employees, with specific requirements for terminating employment contracts. Mandatory employment benefits include:

  • Social insurance enrollment

Foreign employees may face challenges obtaining work permits, but fintech businesses can follow the same route as other businesses operating in Egypt.

Technology and Innovation

Innovations and inventions are protected through:

  • Patent applications
  • Copyright licenses
  • Trademark registrations

Ownership of intellectual property (IP) rights grants the owner the right to prevent unauthorized use, except with express approval or license. Egypt is a member of several international conventions and agreements related to IP protection, allowing for the enforcement of foreign IP rights within its jurisdiction.

By understanding these regulations, fintech businesses operating in Egypt can ensure compliance and avoid severe consequences.