FATF Status​

Egypt is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations​

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Egypt was undertaken in 2021. According to that Evaluation, Egypt was deemed Compliant for 9 and Largely Compliant for 23 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 4 of the Effectiveness  & Technical Compliance ratings.

Egypt has established various laws to combat corruption, including an Anti-Bribery Law and an Illicit Gains Law, but enforcement remains inconsistent, contributing to a culture where bribery is common in public services. Transparency International's 2023 Corruption Perceptions Index ranked Egypt 108 out of 180 countries, highlighting ongoing challenges, including the military's influence on political decisions and limited media freedom to investigate corruption. While the Administrative Control Authority and other bodies are tasked with addressing corruption, the overall environment remains difficult for businesses, which often rely on informal payments and connections to navigate the system.

The Egyptian economy faced significant challenges in 2023 due to conflicts in Sudan and Gaza, which disrupted imports and exports, leading to rising food prices and decreased foreign currency revenues. In response, Egypt adopted a flexible exchange rate and implemented various macroeconomic reforms to attract foreign direct investment (FDI), which reached $11.4 billion in 2022, making Egypt the largest FDI destination in Africa. The government is focused on improving the investment climate through legal reforms and infrastructure projects, aiming to increase private sector participation and sustainable growth.

Egypt's investment climate has seen significant reforms aimed at attracting foreign direct investment (FDI), with inflows reaching $11.4 billion in 2022, up from $5.1 billion in 2021, making it the largest FDI destination in Africa. Despite these efforts, challenges such as bureaucratic obstacles, lack of transparency, and difficulties in accessing foreign currency persist, hindering investor confidence. The government has introduced several legal reforms, including amendments to the Investment Law and the establishment of a Supreme Council for Investment, to create a more conducive environment for business and investment.