Financial Crime World

Egypt’s Crackdown on Financial Crime: A Look at the Legal Framework and Consequences

Egypt, a founding member of the United Nations (UN) and other international organizations, has taken significant steps to combat financial crime through a comprehensive legal framework. In this article, we’ll explore Egypt’s efforts in fighting financial crime, focusing on the following aspects:

  1. International Sanctions in Egypt
  2. Autonomous Sanctions Regime
  3. The Role of CBE Unit
  4. Collective Restrictive Countermeasures
  5. Nature and Types of Sanctions
  6. Lists Related to Sanctions
  7. Licensing and Authorization System
  8. Consequences for Breach of Sanctions

1. International Sanctions in Egypt

Egypt is committed to implementing international sanctions regimes introduced by various organizations including the UN, the African Union, and the League of Arab States. Law No. 80 of 2002 on Money Laundering established a unit within the Central Bank of Egypt (CBE) to cooperate with international sanctions committees and collaborate with other international agencies.

2. Autonomous Sanctions Regime

In addition to international sanctions, Egypt maintains an autonomous terrorist sanctions regime outlined in Decree Law No. 8 of 2015 on the Regulation of Terrorist Organisations and Terrorists Lists. Individuals can be added to this list for five years following a recommendation from the Attorney General and the approval of the Felonies Court or upon conviction for a terrorism-related offense.

3. The Role of CBE Unit

The CBE Unit collects information on suspicious transactions and collaborates with international organizations and judicial bodies in foreign states to share this information. If a potential money-laundering case is identified, the unit refers the case to the General Prosecution.

4. Collective Restrictive Countermeasures

Since 2017, Egypt has applied collective restrictive countermeasures against Qatar. These restrictions included cutting off air and maritime links. The lifting of these restrictions will be implemented following an agreement reached at the Gulf Co-operation Summit on January 5, 2021.

5. Nature and Types of Sanctions

Egypt’s sanctions regime includes banning organizations, freezing their assets, barring membership, and imposing travel bans on individuals. UN sanctions are implemented through the Ministry of Foreign Affairs, which also supervises domestic sanctions under the Law on Terrorist Organisations and Terrorists Lists.

The Financial Regulatory Authority maintains a list of individuals and entities subject to targeted financial sanctions, updated daily. Financial institutions in Egypt are required to comply with recommendations from the CBE Unit regarding individuals and entities on this list.

7. Licensing and Authorization System

Presently, there is no institutionalized system for granting licenses or authorizations to exemptions from international sanctions regimes. Persons seeking to challenge their placement on such lists may communicate with the Ministry of Foreign Affairs or appropriate bodies within the organizations issuing the sanctions.

8. Consequences for Breach of Sanctions

Penalties for breaching Egypt’s sanctions regime include criminal or administrative penalties for non-compliance with regulations, fines, and imprisonment under the Anti-Money Laundering Law. The consequences for committing terrorist acts or financing terrorism can result in life imprisonment and the death penalty.

Relevant Regulators and Contact Information

Key regulators in Egypt include the Ministry of Foreign Affairs, the General Prosecution, and the Financial Regulatory Authority. Contact details for these organizations are as follows:

Ministry of Foreign Affairs:

General Prosecution:

Financial Regulatory Authority: