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 has established various laws to combat corruption, such as the Anti-Bribery Law and the Illicit Gains Law, but enforcement remains inconsistent, with Transparency International ranking Egypt 108 out of 180 countries in corruption perceptions. Corruption is a significant barrier to foreign direct investment, with reports of bribery in public services and a dual payment system for services. Additionally, human trafficking, arms trafficking, and drug-related crimes are prevalent, while the government's response to these issues is often criticized for lacking transparency and effectiveness.

The Egyptian economy has faced significant challenges due to conflicts in Sudan and Gaza, which have disrupted trade and increased food prices. In response, Egypt has adopted a flexible exchange rate and implemented macroeconomic reforms to attract foreign direct investment, which reached $11.4 billion in 2022, making it the largest FDI destination in Africa. The government is also focusing on privatization and improving the business climate through regulatory reforms to stimulate 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, making it the largest FDI destination in Africa. However, challenges such as bureaucracy, lack of transparency, and difficulties in accessing foreign currency persist, hindering investor confidence. Recent legal and regulatory changes, including the expansion of the golden license program and the introduction of new incentives, aim to create a more favorable environment for both domestic and foreign investors.