Egypt’s gov’t establishes special unit in CBE for crimes of money laundering, terrorist financing

CAIRO – 20 April 2022: The cabinet approved Wednesday a draft law amending some provisions of the Anti-Money Laundering Law promulgated by Law No. 80 of 2002.

The amendments stipulated that an independent unit for combating money laundering and terrorist financing shall be established in the Central Bank of Egypt (CBE), in which the concerned authorities are represented.

The unit shall have a board of trustees headed by a judicial expert whose experience is no less than fifteen years in the Court of Cassation or one of the Courts of Appeal, provided that its membership includes the Attorney General or his representative, the Deputy Governor of the Central Bank, the Deputy Chairman of the General Oversight Authority Finance, the head of the Council of Ministers’ Advisors, a representative of the Egyptian Banks Federation, an expert in economic affairs to be chosen by the minister concerned with economic affairs, and the executive director of the Anti-Money Laundering Unit.

A sufficient number of experts from members of the judiciary and specialists in areas related to the application of the provisions of this law will be attached to the unit, and provide the necessary qualified and trained workers.

The President of the Republic issued a decision to form the Board of Trustees, the unit management system, the work system and its employees, without being bound by the systems and rules in force in the government, the public sector, and the public business sector.

The amendments obligate financial institutions, non-financial professionals and businesses, and any other natural or legal person, to implement the mechanisms issued by the unit. This will be in implementation and abiding by the international agreements, treaties and charters related to the financing of terrorism and the financing of the proliferation of weapons of mass destruction, in implementation of the provisions of Article 21 of this law.

The amendments added that a guilty verdict of the predicate crime is not required to prove the illegal source of crime proceeds.

Anyone who violates the provisions of Article (9 bis 1) of this law shall be punished by imprisonment for a period not exceeding one year or a fine of not less than one hundred thousand pounds and not exceeding three hundred thousand pounds.