Banks in Egypt Must Comply with New Anti-Money Laundering Guidelines by CBE

The Central Bank of Egypt (CBE) has issued new guidelines to combat money laundering and terrorism financing, replacing regulations dating back to 2008. The move aims to bring Egyptian banks in line with international standards and best practices.

Development of the Guidelines

The new guidelines were developed in response to legislative and regulatory developments over the past years, including amendments to the Anti-Money Laundering Law and its executive regulations. They also take into account changes made by the Central Bank and Banking System Law, as well as due diligence procedures issued by the Anti-Money Laundering and Terrorism Financing Unit.

Implementation and Compliance

The CBE stressed that the new guidelines are part of its commitment to fighting money laundering and terrorism financing, adopting international best practices in the field, and enhancing existing measures. Banks are required to implement additional measures based on their risk assessments, with the CBE emphasizing that these guidelines represent a minimum requirement for banks operating in Egypt.

Scope of Application

The guidelines apply to all banks operating in Egypt, including branches of foreign banks, as well as majority-owned subsidiaries abroad. The CBE emphasized that foreign branches and subsidiaries must apply anti-money laundering and terrorism financing measures in accordance with Egyptian requirements, even if stricter than those applied in the host country. Banks must inform the CBE of any additional procedures implemented to manage money laundering and terrorism financing risks.

Timeline for Compliance

The Central Bank has given banks six months to adjust their operations to comply with the new guidelines, which are seen as a major step towards strengthening Egypt’s financial system and enhancing its reputation on the global stage.