Debate and expert testimony before parliament end with new money laundering bill
Egypt, Economics, 5/20/2002

The Egyptian People's Assembly ratified on Sunday money laundering draft bill with all its 20 articles.

The parliament endorsed article nine which stipulates that financial institutions should hold books which record their domestic and international money dealings coupled with full data that shed lights on these dealings.

The article says the institution should preserve the books for five years at least as of the date when the dealings were concluded.

It holds the institution responsible for putting such books and records at the disposal of judicial authorities concerned with the enactment of the law whenever they are requested.

The parliament also endorsed the controversial Article Eleven which gives any citizen the right to take out and bring in whatever amount of hard currency provided that the sum should be written down on the entry visa so long as it does not exceed $20,000 or its equivalent.

The bill absolves from any criminal charges any body who reports, with good intention, on any suspected money deal even if it came out to be false.

The parliament also endorsed Article 14 which slaps a maximum 7-year imprisonment for the one who is proved to be money launderer or attempted to launder money in addition to fining the culprit twice the amount of money he/she laundered.

Here are some of the views expressed by the People's Assembly members during the debate:

Addressing the meeting, Justice Minister Farouk Seif AL Nasr said that money-laundering cases are few in comparison with other countries.

But he conceded that there were no "confirmed studies about the volume of dirty money dealings in Egypt."

"It was necessary to pass a legislation to combat money laundering and "safeguard Egyptian economy against its danger after it became an international phenomenon,' the Minister said.

MP Haidar Boghadady (Nasserite) said that the activity of businessmen should be "real and not through trading in narcotics or manipulation in the prices of lands'.

Badri Farghali said the new bill threatens investments in Egypt and he did not approve it.

People's Assembly Speaker asked him: do you approve the entry of narcotics funds into Egypt? Badri replied that there were laws to combat such operations.

Wafdist deputy Mounir Fakhri Abdel Nour said he had several reservations on the bill, particularly as regards its effect on the secrecy of bank accounts.

Central Bank Governor Dr. Mahmoud Abul Enein said that the Bank issued guidelines on may 1,2001, which are applied by Egyptian banks to check the accounts of clients.

Not a single money laundering operation was reported since that date, he said.

Independent deputy Abdel Moeniem Al Olymy asked if there is a contradiction between the bill's articles and some existing laws especially concerning the secrecy of bank accounts, the minister denied any contradiction.

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