The House of Representatives, during its plenary session currently chaired by Adviser Dr. Hanafi Jabali, finally passed a draft law amending certain provisions of Act No. 80 of 2002 on combating money laundering.
The draft law aims to reduce the commission of serious money laundering crimes due to its impact on the national economy of the state, which will spoil the investment climate, as these funds are not the result of actual economic activity affecting the economic situation of the state, which has negative consequences, especially that real economic projects With legal resources they can not resist other projects with illegal resources that get abundant funds and easily.
Councilor Ibrahim Al-Hunaidi, Chairman of the Legislative Committee, indicated during his presentation of the committee’s report that the proposed bill came in the light of the constitutional obligations and international agreements that oblige the state through its provisions to combat terrorism in all respects. to face. its forms and forms, and to locate its sources of funding, according to a specific timetable, as a threat to the homeland and citizens with a guarantee Public rights and freedoms.
He added that the draft law was in line with the submission of the Arab Republic of Egypt to the process of evaluating its legal system for combating money laundering and terrorist financing under its membership of the Financial Action Task Force for the Middle East and North. Africa, which is the regional group “specialized” in combating money laundering and terrorist financing.
He pointed out that the evaluation process led to the issuance of a detailed report covering all aspects of the implementation of international standards aimed at combating money laundering, terrorist financing and the proliferation of weapons. This report has the positive aspects of the Egyptian It also included all the shortcomings and recommended procedures to be met with the improved follow-up report. The follow-up report should include an explanation of the legislative amendments made to avoid the shortcomings mentioned in the aforementioned evaluation report.
He emphasized that the country was striving to meet the above international standards so that he could join the Financial Action Group (FATF) (the Anti-Money Laundering and Terrorist Financing Unit), which in its membership a number of countries and international organizations.
He explained that this accession would bring many privileges to the state, the most important of which would be to further highlight its efforts in the fight against money laundering and terrorist financing, and to provide an opportunity to participate in the formulation of decisions. and policies of the Financial Action Group, and to contribute to the strengthening and development of the capabilities and expertise of its specialists through direct access to the experiences and expertise of countries. It also contributes to the participation in the discussions raised during the general meetings of the group, and participation in the work and activities of the work teams. Join the group in enhancing Egypt’s attractiveness for investment, as well as the state’s desire to take into account the practical considerations revealed by applying the provisions of the Money Laundering Act provided for by Act no. 80) of 2002, which necessitated the amendment of the aforesaid law.
The draft law that was submitted was organized as follows in five articles, in addition to the publication article: Section one replaced the text of Section (3) of the aforementioned Anti-Money Laundering Act, which formed the Board of Trustees of the Anti-Money Laundering Act. Money laundering regulates. Money Laundering and Terrorist Financing Unit at the Central Bank of Egypt. It is led by a judicial expert whose experience is not less than fifteen years in the Court of Cassation or one of the Court of Appeal. It requires qualified and trained workers, and entrusts the President of the Republic with a decision to form the Board of Trustees, the unit management system, the work system and its employees, without being bound by the systems and rules set forth in the government, the public sector and the public business money. sector.
The second article replaced some of the phrases mentioned in the existing law; This is so that the text of Section (12) of the aforementioned Money Laundering Act complies with the amendment of the Central Banking and Banking Systems Act which by Act no. 194 of 2020, and to amend Article (14a). of the aforesaid Money Laundering Act in order to take into account the results of the application The practical provisions of the Money Laundering Act and its provisions comply with international standards by replacing the phrase “and the resulting proceeds” with the word “consequence”.
The third article came by adding articles and a paragraph to the Money Laundering Act referred to by numbers (9 bis 1, 14 last paragraph, 15 bis, 17 bis 1, 17 bis 2), and it introduced new provisions , as follows :
Article (9 bis 1) obliges financial institutions, non-financial professionals and businesses, and any other natural or legal person, to implement the mechanisms taken by the Unit against Money Laundering and Terrorist Financing in the implementation of the provisions of Article (21 ) of this Act.
Article (14, last paragraph) did not require a conviction of the predicate crime to prove the illegal source of the proceeds of the crime.
Article (15 bis) stipulates a fine for anyone who violates the provisions of Article (9 bis 1), which requires financial institutions, non-financial professionals and businesses and any other natural or legal person to use the mechanisms provided by the Anti-Money taken must implement Unit for Money Laundering and Terrorist Financing in implementation of the relevant international conventions, treaties and covenants, financing of terrorism and financing of the proliferation of weapons of mass destruction.
The article provides, “A person who contravenes the provisions of Article (9 bis 1) of this Act shall be punished by imprisonment for a period not exceeding one year or a fine of not less than one hundred thousand pounds and not more than three hundred not. thousand pounds.
Article (17bis 1) requires law enforcement agencies and investigating authorities in money laundering cases and related predicate crimes and terrorist financing crimes to conduct parallel financial investigations by themselves or with the assistance of whom they deem appropriate from other competent authorities to the source of these funds or assets, if any.
Section (17 bis 2) singled out the court with jurisdiction over the predicate crime to consider the crime as provided in Section (2) of the Money Laundering Act. If the predicate crime is an offense, the court investigating the money laundering crime will have jurisdiction over it, and in all cases it will judge independently in each of them.
Article 4 obliges the competent courts to proceed to the hearing of the cases referred to in Article (17 bis 2), in which a final judgment has not yet been given.
Article 5 of the draft has Article (2) of Presidential Resolution No. 164 of 2002 with regard to the Unit against Money Laundering, after the provisions thereof have been included in Section (3) of the Money Laundering Act in its substituted form under Section One of the draft.