6. What is the process for becoming authorized in your jurisdiction?
What is the process for becoming authorized in your jurisdiction?

The process for obtaining the relevant license to carry out the relevant banking or non-banking financial activity will differ depending on the activity in question. Generally, companies seeking to become payment service providers in Egypt must enter into a partnership agreement with an Egyptian bank licensed by the CBE. The partnership agreement must include certain terms, which vary depending on the type of payment services to be offered. After entering into a partnership agreement, the bank will apply for the relevant license with the CBE on behalf of the company. The local entity will need to provide the bank with all documentation and information required to obtain the license.

Please note that the CBE is preparing new regulations with regard to payment services. It is expected that such regulations, once issued, will set out a process by which companies seeking to offer certain payment services in Egypt will be able to apply directly with the CBE to obtain the requisite license. That said, based on our informal discussions with the CBE, it is expected that such companies will still need to enter into a partnership agreement with an Egyptian licensed bank. Accordingly, the above process may be subject to change in light of the new regulations once they are issued.

Conversely, companies seeking to carry out NBFSs must apply for a license with the FRA. The applicant must submit the completed relevant application form, to which it must attach the required supporting documents. The documentation required to be submitted will vary depending on the type of NBFSs to be offered and the licensing requirements applicable thereto. Please note that a separate application process shall be carried out where a company is seeking to offer the relevant NBFSs using fintech. Please refer to question 5 above for more details.