Egyptian Courts Crack Down on Money Laundering and Terrorist Financing: A Look at Egypt’s Legal Framework and Challenges

International Response to Money Laundering and Terrorist Financing

In the late 1980s, the international community began cracking down on money laundering and terrorist financing.
The UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, signed in 1988, aimed to combat these illicit activities.
The convention introduced the term money laundering as “the conversion or transfer of property derived from any drug trafficking offense … for the purpose of concealing or disguising the illicit origin of the property or of assisting any person involved in such an offense to evade the legal consequences of his or her actions.”
The UN Convention paved the way for the Financial Action Task Force (FATF), an intergovernmental body that monitors financial crimes and advances policies and guidelines to combat them.

Egypt passed Law No. 80 of 2002 on Combating Money Laundering, outlining a rigorous framework to deter and address money laundering and terrorist financing within the country.
A money laundering offense is committed when a person knows that the funds in question have been derived from criminal activity and intentionally conceals the funds or assists in evading legal consequences.

Prosecuting money laundering and terrorist financing offenses requires demonstrating the illegal origin of the funds.
The Egyptian Court of Cassation ruled in case no. 12808 for the Judicial Year 82 that a suspected money launderer can only be convicted if the underlying predicate offense has been proven.
This approach maintains the commitment to upholding the presumption of innocence and the sanctity of personal property.

Some inconsistencies exist in the Egyptian judiciary’s approach to money laundering and terrorist financing cases.
However, the vast majority of cases confirm the requirement for proving the predicate offense before addressing money laundering or terrorist financing offenses.

Egypt has expanded the definition of funds and terrorist financing within the CML Law.
Regulated institutions are required to submit suspicious transaction reports and establish adequate compliance systems.

Egypt balances its commitment to upholding traditional legal principles with the ever-evolving landscape of global financial crimes.
By vigorously addressing money laundering and terrorist financing, Egypt seeks to ensure its financial system remains secure and transparent, aligning with international standards and contributing to the global effort to combat these illicit activities.