Title: Central Bank of Egypt’s New Regulations: Combating Money Laundering and Terrorism Financing

The Central Bank of Egypt (CBE) has announced new regulations to strengthen Egypt’s financial system and combat money laundering (ML) and terrorism financing (TF). Following are the key points of these new regulations.

The CBE’s Commitment to Global Best Practices

The CBE has emphasized its commitment to adhering to international best practices in combating financial crimes. The regulations apply to all banks operating in Egypt and their foreign branches, as well as foreign banks with a presence in Egypt.

Identifying and Reporting Suspicious Transactions

Banks are required to monitor and report any suspicious transactions to the Financial Intelligence Unit (FIU) of the CBE. Some indicators of suspicious transactions include:

1. Suspicious Cash Transactions

• Discrepancies in cash deposits or withdrawals.
• Multiple cash deposits without clear relationship or purpose.
• Large cash withdrawals from credit accounts.
• Significant cash purchases and sales of foreign currencies.
• Exchanging large amounts of banknotes from small to large denominations.

2. Suspicious External Transfers

• Transfers of large or frequent amounts from high-risk regions.
• Overseas transfers to or from different parties.
• Transactions involving customers in high-risk countries.
• Abnormal transactions through the customer’s account on behalf of other parties.
• Transactions from foreign electronic payment companies or those associated with virtual currencies.

3. Suspicious Trade Financing Operations

• Shipping goods to or from high-risk countries.
• Discrepancies in the description or value of goods.
• Unexpected increases or decreases in the value of goods.
• Inconsistencies between documents and customer information.
• Trade financing involving complex or unusual payment terms.

Please note that this list is not exhaustive, and financial institutions in Egypt should remain vigilant and report any other suspicious activities as per the new regulations.

The Importance of Financial Institutions’ Responsibility

The Central Bank of Egypt has emphasized the importance of financial institutions’ role in the fight against financial crimes. The CBE’s zero-tolerance policy towards money laundering and terrorism financing underscores the significance of this responsibility.