Egypt’s Crackdown on Money Laundering: AML Regulations and Enforcing Agencies

Egypt has taken significant strides to combat money laundering and terrorist financing by implementing various Anti-Money Laundering/Counter-Terrorism Financing (AML/CFT) regulations. Two primary entities responsible for enforcing these regulations are the Money Laundering Combating Unit (MLCU) and the Financial Regulatory Authority (FRA).

The Enforcing Agencies: MLCU and FRA

1. Money Laundering Combating Unit (MLCU): Established in 2002 under the Anti-Money Laundering Law (CML), the MLCU is Egypt’s financial intelligence agency. The MLCU investigates suspicious transactions reported from financial institutions or other organizations and referred them to law enforcement if illicit activity is discovered.
2. Financial Regulatory Authority (FRA): In 2009, the Egyptian government created the FRA to regulate and oversee non-bank financial institutions.

Both the MLCU and FRA work together to safeguard Egypt’s financial system.

Compliance Requirements for Financial Institutions

To comply with AML/CFT regulations in Egypt, financial institutions must adhere to several requirements, such as:

1. Customer Due Diligence: Verification of identities and checks against various sanction, Politically Exposed Person (PEP), and adverse media databases to ensure businesses are not engaging with money-laundering or terrorist-financing individuals or entities.

Solutions to Comply with AML/CFT Regulations in Egypt

MemberCheck offers various solutions to help businesses comply with these regulations in Egypt:

• PEP and Sanction Checks: Scanning clients against global data sources
• Adverse Media Checks: Providing information about potential risks
• Customer Identity Verification: Verifying clients’ identities

Reporting Suspicious Transactions to the MLCU

To comply with MLCU requirements, financial institutions must report any suspicious transactions, regardless of their value, to the authority as soon as there is a reasonable suspicion. Financial institutions should report each suspicious transaction in a single Suspicious Activity Report (STR). Moreover, financial institutions must retain all relevant information and documentation related to the suspicious transaction.

The “Compliance Officer” is responsible for reporting suspicious transactions to the MLCU. Reporting must be done immediately upon discovery, and the documents and internal reports related to the suspicious transaction should not be shared with anyone outside the reporting organization, except for auditors involved in court proceedings or oversight by courts.

Benefits of Using MemberCheck Solutions

1. Streamlining the AML/CFT regulations process: Allows businesses to focus on core operations
2. Expert Jurisdictional Risk Checks:
3. AML Consulting Services:
4. Compliance as a Business solution: Catering to various aspects of your AML program

Conclusion

This article provides an overview of Egypt’s efforts to combat money laundering and terrorist financing through AML/CFT regulations and the enforcing agencies, MLCU and FRA. When dealing with regulatory compliance, it is essential to seek expert solutions like MemberCheck to streamline the process and ensure adherence to local and global AML regulations.

Always consult your local regulatory authority sites for the latest, comprehensive, and full information.