Egypt’s KYC Regulations: A Comprehensive Overview of Identity Verification Requirements
Egypt’s financial sector is subject to a strong Anti-Money Laundering (AML) framework outlined in Law No. 80 of 2002. This legislation sets up legal obligations for financial institutions and introduces safeguards, including customer due diligence practices, reporting suspicious transactions, and record-keeping. In this article, we focus on the KYC (Know Your Customer) procedures and identity verification requirements according to the Central Bank of Egypt, Financial Regulatory Authority, Money Laundering Combating Unit, and other relevant documents.
1. Background and Scope
The Egyptian AML/KYC regulations serve as a crucial guide to understanding the specific identity verification requirements. In this section, we cover key information from the Anti-Money Laundering Law (No. 80 of 2002) and the “Due Diligence Procedure–Banking 2020.”
2. Definitions and Key Terms
Before we delve into the KYC procedures, we need to define some essential terms:
- Client: Our customer.
- End-user: The client’s customer, as viewed from Shufti Pro’s perspective.
- Document Verification: The process of verifying the authenticity of a government-issued identity document.
- Identity Verification: The process of confirming the end-user’s identity.
- Proof of Identity: Any official document issued by the Government that can be used to identify an individual (a natural person).
3. Identity Verification Requirements
The Egyptian regulations impose specific identity verification requirements on clients. Proper identity verification is essential, especially when end-users do not present themselves for physical verification.
Shufti Pro offers three methods to perform identity verifications on behalf of clients:
3.1. Document Verification
Shufti Pro can use photo-based biometric identity documents to verify the end-user’s identity. Accepted documents as proof of identity include a valid passport, a current driving license, or a national identity card.
3.2. Real-time Audio-Video Transmission Verification
During a real-time interactive video session between an Identification Expert and the end-user, the expert will ask the end-user to show their identity documents and perform random gestures to confirm their identity and establish a liveness check.
3.3. Document Verification Service
Shufti Pro offers a specialized document verification service that includes checks on the authenticity of the document and its security features to ensure a reliable verification process.
4. Record Retention
As per Egyptian regulations, clients must retain data for a minimum of five years. When data is processed, collected, and managed by a relevant third party, clients remain responsible for collecting all necessary documentation (Due Diligence Data) promptly.
Additional KYC Requirements
In the next section, we will discuss additional KYC requirements, such as political exposed persons (PEPs) and enhanced due diligence measures, as well as reliance on external services. Stay tuned!
- PEPs: To be added…
- Enhanced Due Diligence Measures: To be added…
- Reliance on External Services: To be added…