Egypt Enhances Know Your Customer (KYC) Regulations to Combat Money Laundering and Financial Terrorism

Introduction

In an effort to prevent financial crimes, Egypt has strengthened its Know Your Customer (KYC) regulations. The revised rules aim to increase transparency in the financial sector, particularly regarding currency and virtual assets.

History of KYC in Egypt

Egyptian Minister of Supply and Internal Trade Decree No. 906 of 2001

KYC was introduced as a principle for custodians to register all personal data of customers with whom they signed securities account management contracts. This included vital information such as:

• National ID numbers
• Dates of birth
• Addresses
• Telephone numbers

Recent Amendments

Egyptian Anti-Terrorism Law No. 94 of 2015

This law defined funds and assets, including physical and virtual assets, that can be used to facilitate terrorist activities.

Decree No. 120 of 2019

Article 13 emphasizes the importance of refusing to fill KYC applications as a suspicious action.

KYC Requirements

All national and international banks must comply with KYC measures to decrease crimes such as money laundering and financial terrorism. This includes:

• Registering all personal data of customers
• Verifying customer identities
• Monitoring transactions for suspicious activities

Liability and Consequences

In case of any action that affects funds and assets, the person involved will be considered as initiating terror. The revised regulations aim to strengthen Egypt’s stance against financial crimes and ensure a safer financial environment.

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