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 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 faces significant challenges related to crime and corruption, with a legal framework in place to combat these issues, yet enforcement remains inconsistent. Corruption is pervasive across various sectors, with reports of bribery and embezzlement affecting public services and private enterprises, while human trafficking, arms trafficking, and drug-related crimes also pose serious threats to societal stability.

Despite the government's efforts to address these issues, including the establishment of anti-corruption bodies, the influence of the military and a lack of dialogue with civil society hinder meaningful progress. The judicial system is often criticized for its lack of fairness, and while there are some initiatives to support victims of crime, the overall environment remains restrictive for NGOs and media, limiting their ability to advocate for transparency and accountability.

The Egyptian economy has faced significant challenges in 2023, primarily due to conflicts in neighboring Sudan and Gaza, which have disrupted trade and increased food prices, thereby straining foreign currency revenues. In response to these economic pressures, Egypt secured an $8 billion loan from the International Monetary Fund (IMF) and implemented reforms aimed at attracting foreign direct investment (FDI), including adopting a flexible exchange rate and enhancing the business climate through regulatory reforms. Despite ongoing bureaucratic obstacles and issues related to transparency and enforcement, Egypt has emerged as the largest FDI destination in Africa, with significant investments in infrastructure and renewable energy, positioning itself as a regional trade and investment hub.