Financial Crime World

Egypt Implements Stringent Financial Crime Reporting Requirements

National Regulatory Framework

In a bid to combat money laundering and terrorist financing, Egypt has established a robust regulatory framework for financial institutions to report suspicious transactions. The country’s Anti-Money Laundering law no 80 of 2002, along with its executive regulation, serves as the cornerstone of this effort.

  • The Money Laundry & Terrorist Financing Combating Unit, established under the Central Bank of Egypt, is responsible for reviewing and investigating suspicious transaction reports from financial institutions.
  • The Financial Regulatory Authority (FRA) also plays a crucial role in supervising, auditing, and regulating non-banking financial institutions to ensure compliance with AML regulations.

Know Your Customer (KYC) Requirements

Financial institutions in Egypt are required to conduct thorough KYC checks on their customers before establishing any business relationship. This includes verifying the customer’s identity, suitability, and risk profile.

For Natural Persons:

  • Full name
  • Nationality
  • Date of birth and gender
  • Registered address
  • Phone number and email address (if applicable)
  • Job title and workplace address
  • Purpose of creating an account
  • Other parties with control or access to the bank account

For Juristic Persons:

  • Company’s commercial register
  • Company’s Tax Card
  • Minutes of the board of directors meeting
  • Shareholders owning at least 25% of the company’s shares and board members’ IDs (Passports)
  • One authorized signatory must be present during the process

Relying on Third Parties

Financial institutions may rely on third parties, such as credit institutions, financial institutions, auditors, external accountants, tax advisors, notaries, and other trust or company service providers, to fulfill AML/KYC obligations. However, the obligated party remains liable for maintaining regulatory compliance.

Outsourcing Customer Due Diligence

It is possible for financial institutions to outsource customer due diligence to third parties that are not obliged by law to meet AML regulations. In such cases, the obligated party may require the third party to comply with AML regulations, and their actions will be attributed to the obligated party.

Conclusion

Egypt’s financial crime reporting requirements aim to prevent money laundering and terrorist financing. Financial institutions must ensure they comply with these regulations to avoid any potential penalties or reputational damage. By understanding the KYC requirements and relying on third parties, financial institutions can maintain regulatory compliance and protect their customers’ interests.