Financial Crime World

Egyptian Regulations Mandate Identity Verification for Businesses

Overview

The Egyptian government has implemented regulations requiring businesses to verify the identities of their customers as a means of combating money laundering and terrorist financing.

Ongoing Identity Verification Requirements

According to the regulations, identity verification is not a one-time process but rather an ongoing requirement. Businesses must verify the identities of their customers in multiple instances, including:

  • When onboarding new customers
  • During transactions exceeding certain monetary thresholds

Document Verification Service

To ensure compliance with these regulations, Shufti Pro offers a specialized document verification service that checks the authenticity of documents submitted by customers. The service includes checks on security features such as:

• Holograms • Tapered/crumpled edges • Doctored elements • Form inconsistencies • Document expiration • MRZ (Machine Readable Zone) • Reflected colors • Microprinting

AML Screening and Politically Exposed Persons (PEPs)

The Egyptian regulations also require businesses to determine if their customers are:

  • Politically Exposed Persons (PEPs)
  • Hold public offices
  • Exhibit a higher risk profile

Shufti Pro provides an AML Screening service that screens an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Compliance and Due Diligence Measures

The regulations allow businesses to seek the services of third-party providers for due diligence measures. However, it is crucial for businesses to maintain all compliance and fulfill AML and KYC obligations, regardless of reliance on a third party.

Data Retention

Egyptian regulations also require businesses to retain data for at least five years as part of their AML and KYC obligations for due diligence.

Importance of Compliance

By complying with these regulations, businesses can ensure a safer and more secure environment for their customers while also avoiding penalties and fines. Shufti Pro is committed to helping businesses navigate the complex world of identity verification and compliance.