Introduction:
Money laundering affects the economic, social and political conditions in Egypt and on inflation and increasing the general level of prices, and weakening the stability of the foreign exchange market, exploits the money laundered to finance terrorism, which led to the failure to create real jobs, which led to the inflation of the problem high unemployment, low wages of the workforce and low standard of living, forced the Egyptian government to intervene to pass the new law No. (17) for 2020 amending the anti-money laundering law No. 80 of 2002.
What does money laundering mean?
The perpetrator of the offence of money laundering is anyone who knows that funds or assets are derived from an original crime and deliberately transfers or transfers proceeds, with the intention of concealing, disguising, concealing, concealing, managing, preserving, changing the truth of funds or assets from an original crime, or deliberately preventing the discovery or obstruction of the original perpetrator. – Acquiring, possessing, using, managing, managing, preserving, replacing, depositing, securing, investing or investing in the original offence. Manipulating its value, concealing or disguising the true nature of it, its source, location, how it is disposed of, moved, owned or related rights.
Stages:
Money laundering is carried out through three stages: deposit, camouflage and merger.
New amended sanctions:
The new amendments tightened sanctions to achieve deterrence, and here are the new tough sanctions:
Article 14:
A penalty of up to seven years’ imprisonment and a fine equivalent to the same amount of money in question shall be imposed on anyone who commits or proceeds to commit the crime of money-laundering under article (2) of this Act.
This offence is excluded from the application of the provisions of article 32 of the Penal Code.
Article (14 bis):
The confiscation of seized funds or assets resulting from the offence of money laundering or the original offence shall be confiscated when the provision of the article (2) of this Act is violated, and the confiscation includes:
- Money or assets laundered.
- Receipts, including income or other benefits from these receipts.
If the receipts are mixed with funds acquired from legitimate sources, they are confiscated equivalent to the estimated value of them or to the media used or prepared for use in money-laundering or original crimes.
An additional fine equivalent to the value of funds or assets is imposed if they cannot be seized or if they are disposed of in good faith.
Article 14 bis – 1):
Anyone who violates any of the provisions of article 12 of this Act shall be sentenced to a maximum of three months’ imprisonment and a fine of not less than the amount of money in question.
In any case, the amounts and objects in question are controlled and confiscated, if you do not set a fine equal to their value.
What are these modifications?
(Article 1)
Replaces by the definition of funds contained in article (1/section A), and articles (14,16 bis) of the Anti-Money Laundering Act of Law No. 80 of 2002 provide the following texts:
Article (1/panda):
- Funds or assets:
All physical and virtual assets and economic resources, including oil, other natural resources, property, national or foreign currencies, securities or commercial, whatever their value, type or means of obtaining them, whether physical or moral, transferred or fixed, documents, legal instruments, documents, instruments, instruments and editors installed for all of the above, whatever their form, including digital or electronic form, and all rights relating to any of them, including bank credit, tourism networks, banking networks, documentary credits and any Returns, profits or other sources of income generated or generated from these funds, assets, or any other assets prepared for use for financing, products or services, include virtual assets with digital value that can be traded, transferred or digitally transferred and can be used as a payment or investment tool.
Article (16 bis):
Without violating the provisions of the laws governing the work of financial institutions, professionals and non-financial businesses, the supervisory authorities referred to in article (7) of this Law may take action against the institutions and entities of their supervisory authority when violating the provisions of this law, decisions, mechanisms, rules or controls issued in its implementation, any of the following procedures:
- It’s a punishment justification.
- The obligation to remove the violation and take corrective action within a specified period.
- Prevent, suspend, restrict or suspend business for a period of not more than one year.
The executive regulations of this act define the controls and procedures for implementing this.
(Article II)
The term “funds or assets” is replaced by the word “money” wherever it is contained in the aforementioned Anti-Money Laundering Act, and the word “immediately” is replaced by the words “urgently” in the first paragraph of article (8) of the same law.
Article (1/item/e):
Anti-money laundering and related original crimes or terrorist financing as defined by the executive regulations of this law.
Article (9 bis):
All parties are committed to maintaining comprehensive statistics that ensure the effectiveness and efficiency of anti-money laundering and terrorist financing systems, all as defined by the executive regulations of this law.
Article (17 bis):
Without prejudice to the rights of others of good faith, the Attorney General and the Military Prosecutor may, as the circumstances may, at the request of the Chairman of the Board of Trustees of the Unit, if necessary or urgently order the imposition of protective measures including freezing or detention, with a view to preventing the disposal of funds or assets related to money laundering offences and related original crimes or financing of terrorism.
The issuance of the measures referred to in the first paragraph of this article, and the grievance of them, follow the provisions of articles from 208 bis (a) to 208 bis (e) of the Code of Criminal Procedure.
Article (18 bis):
At the request of counterparts in other countries, the authorities are obliged to provide as much international cooperation as possible to combat money laundering and related original crimes or terrorist financing, in a manner that does not conflict with the fundamental principles of the state’s legal system and ensures that such cooperation is kept confidential.
Article (18 bis-1):
The authorities use only the information obtained through judicial cooperation in the area of money-laundering offences and related original crimes or terrorist financing for the purpose for which they were requested, unless they have obtained prior authorization from the foreign counterpart authority provided by the information, and in the latter case must benefit the authority with which they cooperated in a timely manner using the information they have obtained and the implications as determined by the executive. For this law.
Article (18 bis-2):
Requests for mutual legal assistance may not be rejected on the basis of binding confidentiality provisions of financial institutions, or simply because the offence involves tax matters, in contravention of the fundamental principles of the state’s legal system.
Article (18 bis-3):
Entities may conduct inquiries on behalf of their foreign counterparts and exchange as much information as possible from them, in a manner that does not conflict with the basic principles of the legal system in the state as defined by the executive regulations of this law.
(Article 4)
The words “original related offences” are added after the term “money laundering” contained in article (18) of the AML referred to.
(Article 5)
The fourth paragraph of article (12) of the anti-money laundering law referred to is deleted.
How will this law provide a safer atmosphere?
Providing anti-money laundering policies and procedures to help financial institutions combat money laundering by preventing criminals from engaging in transactions to hide the assets of funds associated with illegal activity, which generally helps address money laundering that will help address crimes of all kinds.
Preventing the undermining of the integrity of national economies and financial regulations.
Increased faith in democratic structures.
Conclusion:
It appears from the foregoing that the government has made a recent amendment to the Anti-Money Laundering Act to combat money laundering and terrorist financing, in a way that prevents those involved in criminal activities from exploiting the integrity and stability of the state’s financial system.
It seems excellent to form the National Committee against Money Laundering and Terrorist Financing, which develops the policy to combat money laundering and terrorist financing and develop plans for its implementation, follow up with the relevant authorities for the purposes of implementing the obligations contained in the relevant international resolutions, and to participate in international forums on combating money laundering and terrorist financing.
