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FATF recognizes Egypt for advancing financial inclusion

Businessmen Team news 14 October 2025 01:46 PM
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FATF recognizes Egypt for advancing financial inclusion

The Financial Action Task Force (FATF) has recognised Egypt's experience as a global best practice in balancing the promotion of financial inclusion with adherence to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standards.

The inclusion of the Egyptian model was made in the FATF's updated guidance document released in June 2025, highlighting the pioneering role of Egypt, particularly the Central Bank of Egypt (CBE), regionally and internationally in advancing financial inclusion and combating illicit financial flows.

FATF is an intergovernmental organisation based in Paris, France, established in 1989. It has 40 members and sets international standards to combat money laundering, terrorist financing, and proliferation financing, ensuring national authorities can tackle illicit funds linked to serious crimes such as illegal drug and arms trafficking, fraud (including e-crimes), and corruption.

The guidance praised the efforts led by the CBE, in collaboration with the Egyptian Anti-Money Laundering and Terrorist Financing Unit (AML/CFT Unit). The CBE's integrated regulatory and supervisory powers were cited as pivotal in designing and implementing measures that ensured a balance between international compliance and financial inclusion.

This effort has built an integrated and effective regulatory framework that contributes to fair and secure access to financial services, economically empowering all segments of society through regulations and initiatives that support inclusion while safeguarding financial stability and consumer rights.

On this occasion, CBE Governor Hassan Abdalla stated that this international commendation "is a confirmation of Egypt's commitment to an ambitious national strategic vision that achieves a balance between protecting the financial system and enabling various segments of society to access formal financial services."

He added that it "reflects the magnitude of the achievement realised on the ground as a result of the substantial efforts exerted by the sectors of the Central Bank of Egypt and the AML/CFT Unit, in cooperation with relevant state bodies, to bolster Egypt's leading role in this regard."

Abdalla stressed that the CBE will continue to promote this integrated approach, which aligns with international best practices, to support economic growth and establish financial inclusion as a key pillar for comprehensive economic development.

The guidance highlighted key regulatory measures taken by the CBE, in coordination with the AML/CFT Unit, to boost financial inclusion. These include applying simplified Know-Your-Customer (KYC) procedures for individuals and micro-enterprises, facilitating the opening of bank accounts for youth aged 15 and above, artisans, and freelancers using only the National ID card, allowing banking agents to verify customer identities to expand the provision of financial services, and developing tailored financial products for various societal groups, such as women, youth, and people with disabilities.

The FATF document also acknowledged the CBE's efforts to promote digital financial inclusion by developing financial infrastructure and supporting the use of e-wallets and prepaid cards, in addition to issuing regulations for the licensing and registration of digital banks. These measures enable institutions to offer banking services via digital platforms and channels, expanding service reach in remote areas.

Furthermore, the CBE has enhanced the role of the Egyptian Credit Bureau (I-Score) and strengthened the Credit Guarantee Company to facilitate access to finance for Small and Medium Enterprises (SMEs).

The FATF guidance on AML/CFT measures and financial inclusion was prepared in consultation with a wide range of international bodies, including the CBE and the AML/CFT Unit, which underscores Egypt's leadership role in this domain. The guidance aims to encourage countries to enhance financial inclusion and apply a proportional, risk-based approach.