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8 indicators that put you in the circle of suspicion of money laundering and terrorist financing


The Financial Supervisory Authority has set 8 guiding indicators to identify operations suspected of involving money laundering or terrorist financing, according to Resolution No. 2 of 2021, which was issued by Dr. Muhammad Omran, Chairman of the Financial Supervisory Authority, regarding supervisory controls in the field of combating money laundering and financing of terrorism. Terrorism against entities operating in non-banking financial activities, which are:

 

1- Clients who refrain from providing sufficient information or provide incorrect information, whether it is personal, about the activity, or about the real beneficiaries of dealing on the account.


2- Clients presenting identity documents with suspicion of forgery.

 

3- Clients who face difficulty in describing the nature of their activity or lack general information regarding that activity.

 

4- Clients who are interested - in an unusual way - to inquire about the systems in place to identify unusual transactions, criteria for suspicion, or notification procedures for suspicious transactions.

 

5- Agents who come from regions known for a high level of corruption or other illegal activities such as drug trafficking and cultivation, arms smuggling, and others.

 

6- A sudden change in the standard of living of an employee of the organization without a clear justification.

 

 

7- Operations that are carried out through local or foreign non-profit entities that are not consistent in terms of pattern or size with the purpose and activity of those bodies, especially if these entities are in countries known for supporting terrorism.

 

8- Operations carried out by agents belonging to countries known to support terrorism.

 

 

The Financial Supervisory Authority had obligated companies listed on the Egyptian Stock Exchange that are licensed to engage in non-banking financial activities to prepare an internal work guide to be approved by its Board of Directors and to provide the Authority with it upon its approval, including the systems and procedures followed to ensure the proper application of the rules, controls and procedures related to combating Money laundering and terrorist financing.

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