Financial Crime World

Egypt Takes Tough Stance on Money Laundering and Financial Terrorism with Know Your Customer Regulations

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Egypt has implemented strict regulations requiring financial institutions to adhere to the principle of “Know Your Customer” (KYC) to combat money laundering, fraud, and financial terrorism.

Background

The Egyptian Minister of Supply and Internal Trade Decree No. 906 of 2001 mandated that banks and other financial institutions collect and retain essential customer information, including:

  • Personal data
  • Nationality
  • Religion
  • Legal form
  • Address
  • Telephone and fax numbers
  • Other identifying factors

Expansion to Non-Bank Financial Activities

Decree No. 120 of 2019 expanded the regulations to non-bank financial activities, aiming to prevent money laundering and terrorist financing. According to Article 13, refusing to fill out a KYC application is considered a suspicious action and may be subject to legal penalties.

Definition of Terrorism

The Egyptian Anti-Terrorism Law No. 94 of 2015 defines terrorism as:

  • Any use of force, violence, threats, or intimidation aimed at disturbing public order or endangering community safety, interests, or security
  • Liability for terrorist actions
  • Any action affecting funds or assets may be considered an act of terror

Importance of KYC in Currency and Virtual Assets

The importance of KYC in dealing with currency and virtual assets cannot be overstated. Egypt’s strict measures are designed to prevent money laundering, fraud, and financial terrorism by ensuring that financial institutions have a thorough understanding of their customers’ identities and activities.

Compliance Requirements

All national and international banks operating in Egypt are required to comply with these regulations to help decrease the occurrence of crimes in this field.

Conclusion

Egypt’s Know Your Customer regulations are a crucial tool in the fight against money laundering, fraud, and financial terrorism. By requiring financial institutions to collect and retain essential customer information, the government is taking a proactive approach to ensuring the security and stability of the country’s financial system.

Key Takeaways:

  • Egypt has implemented strict KYC regulations to combat money laundering, fraud, and financial terrorism
  • Financial institutions are required to collect and retain essential customer information
  • Non-bank financial activities are also subject to these regulations
  • Refusing to fill out a KYC application is considered a suspicious action
  • The government aims to prevent money laundering, fraud, and financial terrorism by ensuring the security and stability of the country’s financial system