Egypt

1. Does Egypt have legislation making it a criminal offence to engage in money laundering and/or terrorist financing?

Both money laundering and terrorism financing offences are regulated by Law No. 80 of 2002 on anti-money laundering and terrorism finance (the “Money Laundering Law”), as well as its executive regulation issued in 2003.

2. To whom does the legislation apply?

The legislation applies to any natural or juristic person that engages in any activity that qualifies as money laundering or terrorism financing as detailed below.

3. What does the legislation prohibit?

Regarding money laundering, the law prohibits any wire or physical transfer of funds with the intention of concealing them, their nature, source, location, owner or changing their nature for the purpose and with the intention of concealing the original crime committed to obtain such funds.

In addition, simply possessing the proceeds of a crime, or using, administrating, depositing, or investing them for the same purpose and intention is considered money laundering.

As for terrorist financing, it is governed by a separate law (Decree Law no. 94 of 2015) not defined under the Money Laundering Law, which provides a list of activities that qualify as terrorism-related offences.

4. How is money laundering defined? Does underlying criminal activity have to be proven?

As highlighted above, an underlying criminal act for obtaining the funds is necessary for an offence to qualify as money laundering. The Money Laundering Law provides that a “principal crime” must be committed.

5. What level of intent or knowledge is required to establish a violation?

In order for the money laundering crime to be committed, the person must have knowledge of the principal crime and intentionally attempt to conceal both the funds obtained therefrom, as well as the crime itself.

6. What are the potential penalties for infringing the legislation?

The penalty for committing or attempting to commit money laundering is imprisonment for a period not exceeding seven years and a fine amounting to double the amounts obtained or concealed in the commission of the crime.

7. Does the legislation have extra-territorial reach?

The Money Laundering Law does not provide for any extra-territorial reach, and simply leaves the matter to international conventions and bilateral treaties. The Money Laundering Law also expressly provides for cooperation between the Egyptian judiciary and foreign judicial authorities.

8. Are there additional anti-money laundering or counter terrorist financing regulations or obligations, such as registration or reporting obligations, for businesses or individuals that operate in particular sectors or undertake particular activities?

Financial institutions and businesses are under an obligation to report any suspicious activity and hold records of all transactions, and can be sanctioned in the event that they fail to do so as per Article 9 of the Money Laundering Law.

9. What are the potential penalties for failing to comply with these obligations?

Failing to report any suspicious transaction or to hold the proper records of the transactions as highlighted above is sanctioned by imprisonment that does not exceed three years in addition to a fine that varies between EGP 100,000 and EGP 500,000.

10. Who are the relevant enforcement authorities in Egypt and what are their contact details?

The Money Laundering Law established a unit within the Central bank of Egypt that specializes in investigating money laundering and terrorism financing offences (the “CBE Unit”) prior to referring cases to the public prosecution.

The CBE Unit’s contact details are as follows:

T: +20 223 920 491; +20 223 920 563

emlcu@mlcu.org.eg