Financial Crime World

Anti-Money Laundering (AML) and Countering Terrorist Financing (CTF) in Egypt

Egypt has implemented various legal and regulatory measures to combat money laundering (ML) and terrorist financing (TF). Here are some key points:

Financial Institutions

  • Suspicious Transactions Reporting: Financial institutions are mandated to report any suspicious transactions to the Money Laundering and Terrorist Financing Combating Unit (MLCU) and prevent transactions involving proceeds of crime or terrorist financing.

Designated Non-Financial Businesses and Professions (DNFBPs)

  • Regulatory Compliance: DNFBPs, including accountants and lawyers, are required to report suspicious transactions related to real estate, management of funds, organization of shares or bank accounts, etc. Failure to comply can result in imprisonment, a fine, or suspension of their practicing certificate.

Strict Punitive Measures

  • Enforcing Regulations: To ensure adherence to these regulations, strict punitive measures are attached for non-compliance.

Control Measures

  • Reducing Cash Use: Egypt has taken various steps to control ML and TF, including reducing the use of cash and promoting electronic payment mechanisms.
  • Encouraging Banking System Usage: The country encourages individuals and businesses to enter the banking system.

International Cooperation

  • Commitment to International Agreements: Egypt is committed to international cooperation on AML/CTF issues and has ratified several international agreements and treaties.
  • National Committee: The National Committee for Coordination in Combating Corruption (National Committee) monitors enforcement of these agreements and co-ordination with national agencies.

Bilateral Judicial Cooperation Treaties

  • Mutual Assistance and Extradition: To ensure compliance with international conventions, Egypt has entered into over 30 bilateral judicial co-operation treaties providing for mutual judicial assistance and extradition.
  • Balancing Traditional Principles: Modern amendments have been made to the AML/CTF framework while preserving traditional legal principles such as the presumption of innocence and sanctity of personal property.

These measures demonstrate Egypt’s commitment to preventing ML and TF, and highlight the importance of international cooperation in this area.