Financial Crime World

Egypt’s Battle Against Financial Crime: AML/CFT Regulations and Enforcement Agencies

Amidst growing concerns over financial crime in Egypt, the country has taken significant strides to enforce Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations. In this article, we explore the key regulatory bodies and their efforts to combat financial crimes in the Arab Republic.

Counteracting Money Laundering in Egypt

In response to money laundering concerns, Egypt enacted the Anti-Money Laundering Law (CML) in 2002, criminalizing money laundering activities. This law led to the establishment of the Money Laundering Combating Unit (MLCU) which acts as Egypt’s financial intelligence agency.

  • MLCU: MLCU is tasked with investigating suspicious transactions reported by financial institutions and other organizations. Potential criminal activity leads to law enforcement involvement.

Regulating Non-Bank Financial Institutions

  • Financial Regulatory Authority (FRA): Established in 2009, the FRA regulates and audits non-bank financial institutions. Their roles include developing and stabilizing the non-bank financial industry, with a focus on preventing financial crime.

Regulatory Compliance

Financial institutions and designated non-financial businesses in Egypt are required to adhere to the following regulations:

  • Onboarding principles
  • Customer due diligence
  • Suspicious transaction reporting procedures
  • Documentation and retention of information
  • Independent verification

Reporting Obligations

MLCU requires institutions to report all suspected transactions, regardless of value, as soon as possible. Reason for suspicion or reasonable doubt is enough for reporting a transaction.

Once reported, suspicious activity reports should not be explained to any parties involved, including the parties to the transaction.

Managing Regulatory Compliance with MemberCheck

MemberCheck offers solutions to help businesses scan clients against global Politically Exposed Persons (PEP) and sanctions data sources, keeping businesses informed of potential risks. Furthermore, MemberCheck’s adverse media check ensures companies remain updated on potential risks clients face through reliable global media sources. Their services can help businesses maintain compliance and protect themselves from potential financial risks.

Stay Informed

Stay informed of your obligations and the latest regulations by visiting your local regulatory authority sites for the most accurate and comprehensive information.