Egypt is among the countries struggling with money laundering and financing of terrorism. Money laundering has become a major problem worldwide since the late 1980s. The United Nations founded the Financial Action Task Force (FATF), an international organization to fight financial crime in 1989. The purpose of establishing the FATF is to develop international standards to fight financial crimes.
Except for international anti-money laundering policies, governments have created national AML policies. In 2002, the Egyptian Government enacted the Combating Money Laundering (CML Law) to legally combat financial crimes. With this law, money laundering has been described as a crime in Egypt. This law was strengthened in the following years with new AML regulations. The Money Laundering Combating Unit (MLCU) was established under the CML law in 2002. The Money Laundering Combating Unit (MLCU) is Egypt's financial intelligence unit. The Money Laundering Combating Unit is responsible for reviewing suspicious transaction reports from financial institutions or other organizations. If the unit detects crime in suspicious transaction reports, it will report to law enforcement.
The Egyptian Government established the Financial Regulatory Authority (FRA) in 2009 and started auditing and regulating non-banking financial institutions. Financial Regulatory Authority aims to ensure the development and stability of non-banking financial institutions. Also, the Financial Regulatory Authority makes arrangements to ensure that the non-banking financial economy is protected from financial crimes.
Anti-money laundering regulations in Egypt has brought some AML obligations to banks operating in Egypt to combat financial crimes. Banks fulfill their AML obligations by performing some checks from the customer's account opening process to the transaction process. An effective fight against financial crimes is carried out with the compliance of banks and other financial institutions with these money laundering regulations.
Banks have to meet the requirements of the Know Your Customer policy in customer account openings. Banks have to obtain and verify customer information. Banks cannot open accounts for people using anonymous or fake names. Banks have to keep customer information and keep it updated.
The compliance officer is responsible for detecting and reporting suspicious transactions within the bank. The compliance officer reports the customer transactions to which it detects money laundering, to the relevant authorities. It is a great crime for the compliance officer to tolerate suspicious transactions.
Banks are responsible for keeping customer records for at least 5 years. The accuracy and timeliness of the information is the responsibility of the banks. Authorized units have the authority to access customer records during the audit.
Banks have to organize training programs for compliance officers at least once a year. In this training, information about money laundering methods and detection methods is given. Banks must keep these training records for at least 5 years.
Banks operating in Egypt must meet the above AML obligations to ensure the Anti-Money Laundering compliance program. Banks that do not meet their AML obligations remain vulnerable to financial crimes. Sanction Scanner is an Anti-Money Laundering Software that helps banks meet AML requirements. Banks can meet AML needs and become ready for audits with Sanction Scanner. You can contact us for information about our AML solutions.