Egypt implements strong measures to safeguard financial systems

CAIRO- 10 December 2024: Ahmed Saeed Khalil, Chairman of the Anti-Money Laundering and Counter-Terrorism Financing Unit, emphasized Egypt's commitment to a robust, multi-faceted approach to protect its financial system from illicit activities.

This comprehensive strategy ensures accurate and reliable information about the "ultimate beneficial owner," which plays a crucial role in preventing the laundering of proceeds from fraudulent and criminal activities.

Khalil’s remarks were made during the opening session of a regional workshop on assessing risks associated with legal entities and arrangements. The workshop, organized by the Middle East and North Africa Financial Action Task Force in collaboration with the United Nations Office on Drugs and Crime and the German Agency for International Cooperation, spans three days.

During his speech, Khalil highlighted that Egypt’s frameworks and mechanisms facilitate timely access to accurate information regarding beneficial ownership. He explained that this strategy relies on three primary approaches:

Registration and Establishment Records: Entities responsible for registering or incorporating legal entities ensure proper documentation.

Corporate Responsibility: Companies are held accountable for maintaining transparency and disclosing beneficial ownership.

Due Diligence by Financial Institutions: Institutions, under the guidelines issued by the Anti-Money Laundering Unit, are equipped to access information about beneficial ownership to meet compliance standards.

Khalil also stressed the vital role of cooperation and coordination on national, regional, and international levels in combating money laundering, associated crimes, and terrorism financing. He noted the importance of global efforts to prevent the misuse of legal entities and arrangements for illegal activities.

Legal entities and arrangements are essential to the global economy, but they are susceptible to exploitation for criminal purposes. Khalil identified some of the most common illicit uses of legal entities and arrangements, including laundering proceeds from fraudulent activities and tax evasion, human trafficking and trade-based money laundering and financing the proliferation of weapons of mass destruction and dual-use goods.

He emphasized that evaluating the risks associated with legal entities and arrangements is a critical step in safeguarding financial systems. Such assessments enable the design of customized policies and procedures that minimize the ability of criminal networks to exploit these entities for laundering illicit proceeds or financing terrorism.

Khalil concluded by stating that enhanced transparency, continuous monitoring of developments, and the exchange of best practices are fundamental to addressing global risks.

This approach ensures that Egypt remains committed to implementing advanced strategies to protect its financial system and contribute to the global fight against money laundering and terrorism financing.