FRA issues non-banking financial service e-payment regs
REGULATION WATCH- FRA issues e-payment regulations for non-banking financial services: The Financial Regulatory Authority (FRA) has issued new regulations to ensure all non-banking financial service providers use non-cash methods when making or receiving payments exceeding the EGP 500 threshold specified by the recently-approved E-Payments Act, according to an FRA statement. The FRA-regulated providers will have to ensure loan, salary, dividend, employee health insurance and syndicate membership fee, and other payments are made electronically. All over-the-limit payments received by the providers will also have to run through online gateways.
Background: The E-Payments Act, which the House approved last March, makes it mandatory for government and private sector entities to make all payments to subsidiaries, suppliers, and contractors electronically. The law is part of the government’s plan to gradually transition towards a cashless, paperless economy.