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. Transparency International ranked Egypt 108 out of 180 in its 2023 Corruption Perceptions Index, highlighting ongoing issues with corruption in both public and private sectors, which hinder foreign direct investment. While the Administrative Control Authority and other bodies are tasked with addressing corruption, their effectiveness is limited by a lack of resources and the influence of military entities in political decisions.

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 secured an $8 billion IMF arrangement to stabilize its economy, adopting a flexible exchange rate and implementing reforms to attract foreign direct investment, which reached $11.4 billion in 2022, making Egypt the largest FDI destination in Africa. Despite ongoing bureaucratic obstacles, the government is committed to improving the investment climate through legal reforms and infrastructure projects.

Egypt's investment climate has seen significant reforms aimed at attracting foreign direct investment (FDI), with the government recognizing its importance for economic recovery. Despite a rise in FDI inflows to $11.4 billion in 2022, challenges such as bureaucracy, lack of transparency, and currency access persist. Recent legal reforms, including the expansion of the golden license program and incentives for green investments, aim to enhance the business environment and stimulate private sector growth.