Financial Crime World

Regulatory Updates on Anti-Money Laundering in Egypt

The Egyptian government has made significant strides in combating money laundering and terrorist financing through a series of regulatory updates and laws. The Central Bank of Egypt (CBE) and the Financial Regulatory Authority (FRA) are among the key bodies responsible for overseeing anti-money laundering (AML) regulations.

Key Regulatory Bodies

  • The CBE: The primary monetary authority in Egypt, ensuring compliance with AML laws within the banking sector.
  • The FRA: Supervises non-banking financial markets and instruments, including insurance and stock market sectors.
  • The Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU): An independent unit responsible for combating money laundering and terrorism financing.

Anti-Money Laundering Law No. 80 of 2002

The Anti-Money Laundering Law No. 80 of 2002 is a comprehensive legislation that aims to prevent and combat money laundering in Egypt.

Key Provisions

  • Definition of Money Laundering: The law defines money laundering as the act of concealing or disguising the origin of proceeds of a crime, or using them in a way that allows them to be reintegrated into the economic circulation without being detected.
  • Obligation to Report Suspicious Transactions: Financial institutions are required to report all suspicious transactions to the EMLCU within specific deadlines and in accordance with established procedures.
  • Penalties for Non-Compliance: Institutions that fail to comply with the law’s provisions face penalties, including fines and closure of their activities.

Executive Regulations

The Executive Regulations of the Anti-Money Laundering Law No. 80 of 2002 were issued by Prime Minister Decree No. (951) in 2014.

Key Provisions

  • Customer Identification: Financial institutions are required to identify their customers and beneficial owners, using specific criteria and methods.
  • Suspicious Transaction Reporting: Institutions must report all suspicious transactions to the EMLCU in a timely manner and in accordance with established procedures.
  • Information Sharing: Financial institutions are obligated to share information with regulatory bodies and other relevant entities in order to support the implementation of anti-money laundering measures.

Conclusion

The Egyptian government has taken significant steps to combat money laundering through the enactment of Anti-Money Laundering Law No. 80 of 2002 and its subsequent executive regulations. The law’s provisions have aimed at preventing and combating money laundering in Egypt.