Financial Crime World

EGYPT’S BATTLE AGAINST FINANCIAL CRIME: UNDERSTANDING THE LANDSCAPE AND LEGAL FRAMEWORK

The Challenge of Financial Inclusion

Egypt’s significant informal, cash-based economy makes it vulnerable to financial risks. Estimates suggest that up to two-thirds of the population does not have bank accounts, while the informal economy accounts for about 40% of the GDP.

The Central Bank of Egypt and the Federation of Egyptian Banks Have Introduced Measures to Incentivize Individuals and Small Businesses to Join the Formal Financial Sector

Several laws and regulations are in place in Egypt to combat money laundering, including:

  • Law No. 80 of 2002 on Combating Money Laundering (as amended)
  • Executive Regulations of Law No. 80 of 2002 on Combating Money Laundering and Terrorism Financing
  • Anti-Money Laundering Unit’s (AMLU) guidelines on a risk-based approach and customer due diligence (CDD)

How Financial Institutions Can Combat Money Laundering

Financial institutions can play a critical role in combatting money laundering by implementing effective anti-money laundering (AML) programs. Best practices for preventing and detecting money laundering include:

  • Ongoing monitoring of customer activity
  • Staff training and awareness
  • Conducting risk assessments
  • Enhanced due diligence for high-risk customers and transactions

Tookitaki’s Role in Combating Money Laundering

Tookitaki is a leading provider of AML solutions that help financial institutions worldwide to enhance their compliance with AML regulations. The company’s Anti-Money Laundering Suite (AMLS) and Anti-Financial Crime (AFC) Ecosystem work together to address the shortcomings of siloed systems in the fight against money laundering.

Tookitaki’s approach starts with its AFC ecosystem, a community-based platform to share information and best practices in the fight against financial crime. The AFC ecosystem is powered through Tookitaki’s Typology Repository, a live database of money laundering techniques and schemes called typologies.

The AMLS, on the other hand, is a software suite deployed at financial institutions which collaborates with the AFC Ecosystem through federated machine learning. The AMLS extracts the new typologies from the AFC Ecosystem and executes them at the customers’ end, ensuring their AML programs stay ahead of the curve.

The Importance of AML Efforts in Egypt

Combating money laundering in Egypt requires a coordinated effort from financial institutions, regulatory bodies, and technology providers. Financial institutions must implement effective AML programs and adhere to best practices in preventing and detecting money laundering. Technology solutions, such as those offered by Tookitaki, can play a critical role in assisting financial institutions in their AML efforts.

We encourage financial institutions in Egypt to try Tookitaki’s AML solutions and experience the benefits of automated detection, reduced false positives, and increased efficiency in their AML programs.