The Financial Control is in the process of developing a plan to reconcile the guiding conditions of the non-banking financial sector

Economy and stock exchange

Mohamed Omran: Issuing a periodic book on the obligations of customers in non-bank financial activities to comply with the law regulating the use of non-monetary means of payment

Dr. Mohamed Omran – Chairman of the Financial Supervisory Authority issued the circular No. (2) for the year 2019 to regulate the use of non-monetary means of payment in completing financial transactions for all companies and entities subject to the supervision and supervision of the Authority and its clients. 18 of 2019 – clarifying the obligations arising from its issuance to customers in the field of non-bank financial activities, and facilitating the announcement of a plan to reconcile the guiding conditions and recommend the rapid implementation.

Omran explained that the periodic book has defined the scope of compliance with non-monetary means of payment in financial transactions and obliged the companies and entities subject to the supervision and control of the Authority by two orders: first, payment by means of non-cash payment, when they exceed the limits specified in the executive regulations of the law when granting cash financing, Of mortgage finance companies, financial leasing or factoring, microfinance companies or associations or any non-bank financial entity, and when distributing profits resulting from the contribution to the capital of companies or investment funds, and the disbursement of dues of union members and The benefits of the participants in the private insurance funds and insurance compensation, and the disbursement of subsidies and donations by associations and institutions working in the field of civil work or other private legal persons and establishments of various kinds, as well as when the payment of the consideration in cases of purchase or lease or exploitation or use of land or real estate or express transport vehicles, And when paying the dues of suppliers, contractors, service providers and other contractors, and finally when the payment of dues of employees and experts and heads and members of boards of directors and committees, and social insurance contributions, when the number exceeded the number Or the total value of their monthly wages shall be as defined by the executive regulations of this law.

The other side of the obligations – stipulated in the periodic letter – is to collect cash payments, insurance premiums, union subscriptions, private insurance fund contributions – through non-monetary means of payment – and also to receive subsidies and donations through associations and institutions working in the field of national work , Or other private legal persons and establishments of all kinds, and collect proceeds in cases of sale, lease, exploitation or use of land or real estate or express transport vehicles, fines and other entitlements for companies and entities operating in the Anash Non-bank finance when the value exceeds the limits specified in the executive regulations of the law.

Amran stressed that the Authority has preferred the precaution by initiating a guiding model for a six-phase reconciliation plan, with its periodic letter and calling on the companies and entities under its supervision to speed up their implementation and to prevent any of the entities subject to the supervision and supervision of the Authority or those responsible for it from natural persons to the penalties and fines received In Articles 7 and 8 of the Law regulating the use of non-monetary means of payment.

He added that the period of reconciliation is six months from the date of starting the work of the executive regulation of Law No. 18 of 2018. The reconciliation plan includes several stages, including the first phase of the start of the consultation processes and the selection of non-cash payment providers to be contracted to implement payment payments and receipts In the event that the dealers with the entity do not have existing bank accounts or other non-monetary means of payment such as credit and debit cards, mobile payment and prepaid cards.

This is followed by the transfer to the stage of contracting with the providers of non-monetary payment services, and obtaining the prior approval of the Commission required only for those licensed to engage in microfinance activity in the activation of non-cash payment transactions to its customers. The third stage is the trial operation of all non-cash payment services and the start of the awareness plan for customers and stakeholders, and the fourth phase and start the implementation of non-cash collection of the payments of the entity. The fifth stage begins the implementation of non-cash payment of payments of the entity, (Payment and collection) by means of non-cash payment and to address all obstacles.

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(tagsToTranslate) Financial Control (t) Finance (t) Economy (t) Money