Financial Crime World

Egypt’s Regulatory Bodies Crack Down on Money Laundering in Banking Sector

The financial sector in Egypt is under close scrutiny from regulators as they take a tough stance against money laundering (ML) and terrorist financing (TF). The Central Bank of Egypt (CBE) and other regulatory bodies are pivotal in ensuring that financial institutions comply with rigorous anti-money laundering (AML) laws and regulations.

Major Regulatory Bodies

  • The Central Bank of Egypt (CBE)

    • Monitors financial institutions to ensure they adhere to AML legislation.
    • Sets guidelines to promote AML compliance in the banking sector.

  • The Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU)

    • Battles ML and TF in the banking sector.
    • Investigates suspicious transactions.
    • Collaborates with law enforcement agencies and other relevant entities to prevent illicit financial activities.

  • The Financial Regulatory Authority (FRA)

    • Regulates non-banking financial markets.
    • Ensures AML compliance in various sectors, including insurance, the stock market, and other non-banking financial entities.

Regulations and Obligations

Under Law No. 80 of 2002, the following regulations and obligations of the regulatory bodies and financial institutions regarding AML must be met:

Financial Institutions

  • Article (8)
    • Report suspicious transactions to the EMLCU.
    • Establish the identity and legal status of customers.
    • Prohibit the opening of accounts or acceptance of deposits of unknown or false origins.

Record-keeping

  • Article (9)
    • Maintain detailed records of financial transactions for at least five years.
    • Make records accessible to judicial authorities upon request.

Protection for Reporting

  • Article (10)
    • Protection from criticism and legal repercussions for individuals who report suspicious transactions in good faith.

International Cooperation

  • Article (18)
    • Advocates for cooperation between Egyptian and foreign judicial bodies in the prevention and investigation of ML crimes.

The regulatory bodies have been unwavering in their dedication to enforcing these laws, making the banking sector in Egypt increasingly challenging for ML and TF activities. Regulations continually evolve to adapt to the ever-changing financial landscape, ensuring a robust defense against ML activities.

  • Continuously adapting to the financial landscape to combat ML and TF.
  • Establishing policies and guidelines to ensure compliance with AML regulations.
  • Collaborating with international partners to prevent cross-border financial crimes.