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Egypt Takes Bold Steps in Combating Money Laundering

Egypt has been at the forefront of combating money laundering and terrorist financing, ensuring the stability and integrity of its financial systems.

At the heart of Egypt’s Anti-Money Laundering (AML) efforts is the Money Laundering Law No. 80 of 2002, which provides the legal basis for preventing and combating money laundering in the country. Additionally, Egypt has ratified several international conventions and agreements related to AML, including:

  • The United Nations Convention against Corruption (UNCAC)
  • The Arab Convention for Combating Corruption

Regulatory Authority

The primary regulatory authority responsible for supervising and enforcing AML regulations is the Money Laundering Combating Unit (MLCU), which operates under the Central Bank of Egypt (CBE). The MLCU plays a crucial role in implementing AML policies and ensuring compliance among financial institutions and designated non-financial businesses and professions (DNFBPs).

Customer Due Diligence

Financial institutions and DNFBPs are required to conduct thorough customer due diligence measures when establishing business relationships with customers. This includes:

  • Identifying the customer
  • Verifying their identity using reliable sources
  • Assessing the nature of the customer’s business

Reporting Suspicious Transactions

Entities subject to AML regulations must also report any suspicious transactions promptly to the MLCU without tipping off the customer. The MLCU is responsible for analyzing these reports and taking appropriate action if money laundering is suspected.

Record Keeping

Financial institutions and DNFBPs are also required to maintain records of transactions, customer identification data, and other relevant documentation for a specified period, as prescribed by law. This ensures that transaction trails are available for regulatory review and investigation.

Employee Training and Awareness

Employee training and awareness programs on AML regulations and procedures are essential in ensuring that staff are well-informed and capable of identifying suspicious activities.

Risk-Based Approach

Entities subject to AML regulations are encouraged to adopt a risk-based approach to AML compliance, assessing and mitigating money laundering risks based on the nature and complexity of their business activities.

Consequences for Non-Compliance

Egypt takes AML compliance seriously and imposes significant penalties for non-compliance. These penalties can include:

  • Fines
  • Imprisonment
  • Revocation of licenses
  • Forfeiture of assets

Financial institutions and DNFBPs found in violation of AML regulations may face severe consequences.

International Cooperation

Egypt has actively participated in international efforts to combat money laundering and terrorist financing, cooperating with various international organizations such as:

  • The Financial Action Task Force (FATF)
  • The Egmont Group of Financial Intelligence Units

This cooperation enables the sharing of information and enhancement of AML measures globally.

Staying Updated

As Egypt continues to strengthen its AML framework to align with international standards, it is essential for businesses operating in Egypt to stay updated with the latest developments and amendments to AML laws and regulations. With the right knowledge and expertise, financial institutions and DNFBPs can play a vital role in contributing to the global fight against money laundering.