Financial Crime World

Egypt’s War on Financial Crimes: Central Bank, EMLCU, and FRA Lead the Charge

In Egypt, the fight against financial crimes such as money laundering and terrorist financing is a top priority. The Central Bank of Egypt (CBE), the Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU), and the Financial Regulatory Authority (FRA) are the key regulatory bodies leading the charge in enforcing stringent anti-money laundering (AML) policies.

Role of Key Regulatory Bodies

Central Bank of Egypt (CBE)

The Central Bank of Egypt (CBE), serving as the monetary authority, plays a leading role in overseeing the banking sector and ensuring compliance with AML laws.

Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU)

The Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU), an independent unit within the Central Bank, specifically focuses on combating money laundering and terrorist financing. This Unit:

  • Collects and analyzes suspicious transaction data
  • Collaborates with law enforcement and other relevant entities

Financial Regulatory Authority (FRA)

The Financial Regulatory Authority (FRA), responsible for supervising non-banking financial markets and instruments, also plays an essential role in ensuring AML compliance in sectors like insurance, the stock market, and other non-banking financial entities.

Legislation such as Law No. 80 of 2002 and subsequent decrees provide a legal framework for AML efforts. Key provisions include:

Crimes Subject to Money Laundering

  • Article (2) outlines various crimes whose proceeds are subject to money laundering, including drug-related offenses, terrorism, illegal arms trading, and fraud.

Money Laundering Combating Unit

  • Article (3) sets up the Money Laundering Combating Unit within the CBE to administer AML policies.

Responsibilities of the Unit

  • Article (4) imposes responsibilities on the Unit, including receiving suspicious transaction reports (STRs) from financial institutions.
  • The Unit creates a database for such information and makes it accessible to judicial authorities.
  • Article (5) describes investigation and reporting procedures when potential money laundering offenses are detected.

Compliance for Financial Institutions

Entities supervising financial institutions, as well as financial institutions, are required to adhere to these regulations. Key requirements include:

  • Implementing AML systems and rules
  • Reporting of suspicious transactions
  • Identity and legal status information for customers
  • Prohibition on opening accounts or accepting deposits of unknown origins
  • Record keeping and updates
  • Availability of records for judicial authorities

Important Aspects of Egypt’s AML Policy

Confidentiality, international cooperation, and protection for those reporting suspicious transactions are other important aspects of Egypt’s AML policy. These provisions ensure robust, comprehensive prevention measures against financial crimes.

  • Confidentiality (Article 11)
  • International Cooperation (Article 18)
  • Protection for Those Reporting Suspicious Transactions (Article 10)