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 2024. According to that Evaluation, Egypt was deemed Compliant for 11 and Largely Compliant for 25 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 the Anti-Bribery Law and the Illicit Gains Law, but enforcement remains inconsistent, contributing to a culture where bribery is common in public services. Transparency International's 2023 report ranked Egypt 108 out of 180 countries for corruption, highlighting the military's influence on political decisions as a factor in the country's economic challenges. While some private companies implement internal controls to prevent bribery, there is no legal requirement for them to do so, and the lack of dialogue between the government and civil society hampers anti-corruption efforts.

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 loan and implemented reforms, including adopting a flexible exchange rate and enhancing its investment climate to attract foreign direct investment, which reached $11.4 billion in 2022, making Egypt the largest FDI destination in Africa.

Egypt's investment climate is evolving as the government recognizes the importance of attracting foreign direct investment (FDI) to address economic challenges. Despite a significant increase in FDI inflows from $5.1 billion in 2021 to $11.4 billion in 2022, investors still face hurdles such as bureaucratic inefficiencies, lack of transparency, and difficulties in accessing foreign currency. Recent legal and regulatory reforms, including amendments to the Investment Law and the introduction of a 'golden license' program, aim to create a more favorable environment for investment and stimulate private sector growth.