Title: Central Bank of Egypt’s New Regulations: Cracking Down on Money Laundering and Terrorism Financing

The Central Bank of Egypt (CBE) has announced new regulations aimed at strengthening its anti-money laundering and counter-terrorism financing measures. These stricter measures are designed to root out illicit activities within the Egyptian financial sector and align with international standards.

New Measures for Egyptian Banks

Banks in Egypt, including their foreign branches and subsidiaries, must now adhere to these new regulations. According to the CBE, these changes will:

1. Help Egypt adopt best international practices in the field.
2. Reinforce existing measures against financial crimes.

Indicators of Potential Fraudulent Operations

Banks must monitor and report the following activities as indications of potential fraudulent operations:

• Large or Frequent Cash Deposits/Withdrawals: Transactions not consistent with a customer’s profile or activity.
• Multiple Cash Deposits: Cash deposits by different individuals or entities into the same account, without clear purpose or relationship.
• Suspicious Cash Transactions: Cash deposits at multiple branches of the same bank within a short period, followed by cash withdrawals or transfers to other accounts, without justification.
• Large Credit Withdrawals: Significant cash withdrawals in credit accounts, resulting in a considerable credit balance without proper explanation.
• Foreign Currency Transactions: Large cash purchases and sales of foreign currencies, without clear need for such transactions.

New Regulations for External Transfers and Trade Financing

The Central Bank of Egypt has issued new regulations targeting external transfers and trade financing operations to identify and prevent money laundering and terrorism financing. These new guidelines include indicators of potentially suspicious transfers, documents, and geographical regions. By reporting these activities, banks hope to reduce financial crimes in these areas.

Key Highlights

1. Banks in Egypt must implement stricter measures against money laundering and terrorism financing.
2. New regulations aim to align Egyptian financial practices with international standards.
3. The following activities are potential indicators of fraudulent operations to be monitored and reported:
   • Large or frequent cash transactions.
   • Multiple cash deposits.
   • Suspicious cash transactions.
   • Large credit withdrawals.
   • Significant foreign currency transactions.
4. New regulations focus on external transfers and trade financing operations.
5. Indicators of potentially suspicious transfers, documents, and geographical regions are to be monitored and reported.
6. The Central Bank of Egypt remains committed to enforcing these measures stringently and collaborating with international financial organizations to maintain peace and financial stability within Egypt and beyond.