Egypt Takes Steps to Combat Money Laundering with Strengthened Anti-Money Laundering Laws
Combating Financial Crime in Egypt
In an effort to combat financial crime, Egypt has strengthened its anti-money laundering (AML) laws and regulations. The country’s AML/CFT (Combating the Financing of Terrorism) policy is designed to prevent the misuse of the financial system for illegal activities.
History of Anti-Money Laundering Laws in Egypt
The Egyptian government enacted the Anti-Money Laundering Law in 2002, which makes money laundering a crime in Egypt. This law was subsequently strengthened by new regulations and the establishment of the Money Laundering Combating Unit (MLCU) in 2002.
The Role of the MLCU
The MLCU is responsible for investigating suspicious transactions reports from financial institutions or other organizations. If a crime is discovered during an investigation, it is reported to law enforcement agencies.
Financial Regulatory Authority (FRA)
In addition to the MLCU, the Financial Regulatory Authority (FRA) was established in 2009 to audit and regulate non-bank financial institutions. The FRA aims to ensure the development and stability of these institutions while also protecting them from financial crime.
Compliance Requirements for Financial Institutions
To comply with Egypt’s AML/CFT regulations, financial institutions must implement certain procedures and guidelines. These include:
- Onboarding principles
- Customer due diligence
- Suspicious transaction reporting
- Documentation and retention
- Notification to the MLCU
Financial institutions are required to report all suspicious transactions regardless of their value to the MLCU. This includes multiple transactions evaluated together as a single suspicious activity report.
Role of Compliance Officer
The compliance officer is responsible for reporting suspicious transactions to the MLCU. The institution must also retain and submit relevant information and documentation provided to them.
Simplifying AML/CFT Compliance with MemberCheck
To help financial institutions comply with Egypt’s AML/CFT regulations, MemberCheck provides a secure and simple solution for scanning Politically Exposed Persons (PEPs) and high-risk individuals, as well as checking names against sanction, regulatory, law enforcement, and other official lists. The company’s sophisticated scan filters and due diligence workflow minimize the time spent on false matches.
Conclusion
In conclusion, Egypt’s strengthened AML/CFT regulations aim to ensure that the country’s financial system is protected from financial crime. Financial institutions must comply with these regulations to avoid penalties and reputational damage.