Egypt Tightens Lugs on Money Laundering: What You Need to Know

Cairo, Egypt - The Financial Regulatory Authority of Egypt has implemented a new decree aimed at combating financial crimes and preventing money laundering and terrorist financing.

New Decree: “Anti-Money Laundering and Terrorist Financing” Decree no. 2/2021

The decree came into effect on January 19, 2021, and brings non-banking financial services entities under its purview. The new regulations require these entities to take several measures to prevent money laundering.

Measures to Prevent Money Laundering

• Develop an internal procedural guide outlining anti-money laundering mechanisms and know-your-customer analysis.
• Obtain approval from the Board of Directors and submit the guide to the Financial Regulatory Authority (FRA) for review.
• Establish a separate audit unit in entities with international branches to test anti-money laundering systems, implement policies, and gather relevant transaction information.

Client Records and Anti-Money Laundering Officer

• Retain client records, including identification and ultimate beneficiary information, for at least five years after the end of the business relationship.
• Appoint an officer responsible for anti-money laundering mechanisms who meets minimum threshold standards, such as having a three-year background in internal auditing.
• Register this individual with the FRA upon appointment.

Strengthening Egypt’s Anti-Money Laundering Framework

With these new regulations in place, Egypt is taking a significant step towards strengthening its anti-money laundering framework and protecting its financial system from illicit activities. The decree marks a major milestone in the country’s efforts to combat financial crimes and ensure transparency and accountability in the financial sector.