Egypt Country Summary

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 2025. According to that Evaluation, Egypt was deemed Compliant for 11 and Largely Compliant for 26 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Egypt faces significant challenges related to crime and corruption, with entrenched practices undermining public trust and governance. Despite having laws aimed at combating corruption, enforcement is inconsistent, and the authoritarian government maintains tight control over socio-economic systems, which fosters an environment conducive to corrupt practices and limits civil society's role in addressing these issues.

Human trafficking, arms trafficking, and drug-related crimes are prevalent, exacerbated by economic hardships and a lack of transparency in governance. While the government has made some efforts to combat these issues, including increasing security measures and implementing reforms, the judicial system remains heavily influenced by political interests, leading to arbitrary detentions and unfair trials that hinder effective law enforcement and justice.

Egypt's economy is currently in a recovery phase following a significant crisis in 2022-23, which saw inflation rates soar above 25%. The government has engaged with the International Monetary Fund (IMF) to secure an $8 billion Extended Fund Facility, and while inflation has decreased to below 15% as of April 2025, challenges remain, including energy shortages and geopolitical tensions that impact foreign currency revenues. To enhance its investment climate, Egypt is implementing reforms aimed at attracting foreign direct investment (FDI), including streamlining bureaucratic processes and introducing new incentives, although obstacles such as corruption and a lack of skilled labor persist.

In Fiscal Year 2023/2024, Egypt witnessed a record surge in FDI inflows, largely driven by a historic $35 billion investment deal, highlighting the potential for growth in various sectors. The government is actively pursuing privatization and business climate reforms to increase private sector participation, aiming to reduce state ownership in the economy from 30% to 65% within a few years. However, the effectiveness of these reforms is hampered by entrenched bureaucratic resistance and the dominance of state-owned enterprises, which continue to pose challenges for private investors seeking a level playing field.