Financial Crime World

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Egypt Takes Steps to Prevent Terrorist Financing

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In an effort to combat the growing threat of terrorist financing, Egypt has implemented strict regulations aimed at preventing the flow of funds to suspected terrorists.

AML/CFT Regulations

The country’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations are designed to ensure that financial institutions and other organizations comply with international standards. The regulations require entities to:

  • Conduct thorough customer due diligence
  • Report suspicious transactions
  • Maintain accurate records

AML/CFT Supervisors in Egypt

Egypt’s AML/CFT supervisor is the Money Laundering Combating Unit (MLCU), which was established in 2002 under the Anti-Money Laundering Law. The MLCU is responsible for:

  • Investigating suspicious transaction reports
  • Working with law enforcement to combat financial crime

Additionally, the Financial Regulatory Authority (FRA) was established in 2009 to regulate non-bank financial institutions and ensure their stability and integrity.

Compliance Requirements

To comply with the regulations, entities must implement robust AML/CFT programs that include:

Onboarding Principles

  • Conduct thorough customer due diligence
  • Verify customer identity

Customer Due Diligence Procedures

  • Identify customers’ business relationships
  • Monitor customer transactions

Suspicious Transaction Reporting Procedures

  • Report suspicious transactions related to money laundering and terrorist financing

Documentation and Retention Requirements

  • Maintain accurate records of transactions and customers
  • Retain records for at least five years

Independent Verification Requirements

  • Conduct regular reviews of AML/CFT programs
  • Verify compliance with regulations

Notification to the MLCU

  • Report suspicious transactions to the MLCU immediately
  • Complete a single Suspicious Activity Report (STR) form if multiple suspicious transactions are evaluated together

Reporting Obligations

Entities must notify the MLCU of all suspicious transactions, regardless of their value. A Board-appointed Compliance Officer is responsible for reporting suspicious transactions to the MLCU.

How MemberCheck Can Help

MemberCheck offers a secure and simple solution for:

  • Scanning for politically exposed or high-risk individuals
  • Checking names against sanction, regulatory, law enforcement, and other official lists
  • Minimizing false matches with sophisticated scan filters and due diligence workflow

Our reporting sections allow you to access customer details and download reports for further investigation or auditing purposes.

Conclusion

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In an effort to prevent terrorist financing, Egypt’s AML/CFT regulations are a critical step forward in ensuring the integrity of its financial system. By implementing robust compliance programs and reporting suspicious transactions, entities can help prevent the flow of funds to suspected terrorists and ensure the stability and security of the country’s economy.