Anti-Money Laundering
Anti-Money Laundering (“AML”) laws and regulations in Egypt are designed to help the country combat money laundering. The main AML legislations are as follows:
Law No. (80) of 2002, Promulgating the Anti-Money Laundering Law As amended by Law No. 154 of 2022; and
Resolution No. (120) of 2019, Concerning Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulatory Controls For the entities engaged in non-banking financial business.
AML laws in Egypt applies to a range of entities and individuals, including apply to financial institutions, non-financial businesses, professions, and designated non-financial businesses and professions (DNFBPs).
Certainly, breaching Anti-Money Laundering regulations in Egypt has tangible consequences. These include criminal penalties, fines, asset confiscation, and damage to reputation.
Article (14) from Money Laundering (AML) Law No. 80 of 2002, amended by Law No. 154 of 2022 states that any person who commits or attempts to commit a money laundering crime shall be imprisoned for a period not exceeding 7 years, and fined a sum twice the amount of money subject of the crime. In all cases, the seized funds shall be confiscated, or an additional fine equivalent to the value of these funds shall be imposed if such funds cannot be seized or have been disposed to others in good faith.
Article (16) from Money Laundering (AML) Law No. 80 of 2002, Amended by Law No. 154 of 2022 states that in cases where a crime is committed by a legal entity (such as a company or organization), the individual who actively manages or controls that entity will face an imprisonment and fine with an amount not less than EGP 5,000 and not more than EGP 20,000, or either. Additionally, if the crime was committed by someone working for the entity on its behalf, the entity itself will be held responsible for paying any financial penalties and damages incurred.
In Egypt, there is no comprehensive law governing bribery and corruption, and the main legislation that cover bribery and corruption is as follows:
Law No. 150 of 2021 Amending certain provisions of the Penal Code Promulgated by Law No. (58) of 1937.
Article 103 of the Egyptian Penal Code in states that any civil servant who asks for himself or for a third party, accepts, or takes a promise or a gift in return for performing any of the duties of their position shall be considered a Bribee.
As per Article 103 of the Egyptian Penal Code, public officials that accept a bribe shall be punished by life imprisonment and a fine of not less than EGP 1,000 and not exceeding the gift or the promise he was given. In Addition, Article 105 states that both imprisonment and a fine of not less than EGP 100, and not exceeding EGP 500, shall be the inflicted on a civil servant who accepts a present or a gift from a person for whom he performs his duties or refrains from performing any duty thereof, or defaults on the duties of the position, after completing or refraining from doing that work, or defaulting on his position duties with the aim of being compensated therefor, and without a prior agreement.
Egypt does not have specific legal provisions for holding a company directly responsible for acts of bribery or corruption committed by its management or staff members. However, Article 162 of Companies Law No. 159 of 1981, Amended by Law No. 4 of 2018 states that it would entail imprisonment of not less than two (2) years and a fine of not less than EGP 2,000 and not more than EGP 10,000 for any board member who distributes dividends and/or interests contrary to the law or the constitutive documents of the company.
