FRA warns against members of terrorist families benefiting from microfinance

The Financial Supervisory Authority has warned those involved in financing medium, small and micro enterprises from 10 behaviors that may put them under suspicion of a money laundering or terrorist financing crime, according to Resolution No. 2 of 2021, issued by Dr. Mohamed Omran, Chairman of the Financial Supervisory Authority regarding Supervisory controls in the field of combating money laundering and terrorist financing for entities operating in non-banking financial activities, which are:

 

1- Expedited payment of the value of the financing in particular during the first four months of granting the financing and for the entire value of the financing.

 

2- Lack of interest in knowing the costs of financing, the rate of return, administrative expenses, and so on.

 

3- That the client has previous and good credit banking transactions and desires to deal with one of the parties that engage in the activity of financing medium, small and micro enterprises at a high cost.

 

4- Proving the existence of another real beneficiary of the financing other than the customer who disbursed the financing.

 

5- The client obtains several financings from different places within a short period ranging from two to six months.

 

6- Not wanting to sign the know your customer form or reluctance to provide personal details.

 

7- The inability to renew the validity of the customer's number cards.

 

8- Proving the existence of another real beneficiary of the financing other than the customer who disbursed the financing.

 

9- Belonging to families where one or more of its members is known to be involved in terrorist criminal activities, particularly in the regions and local centers.

 

10- Projects that are funded within the border governorates, especially those that need special attention in verifying the seriousness of the funded project and the integrity of its owner.

 

The Financial Supervisory Authority had obligated companies listed on the Egyptian Stock Exchange and licensed to engage in a non-banking financial activity to prepare an internal work guide to be approved by its board of directors and to be provided to the authority upon approval, that includes the systems and procedures followed to ensure the proper application of rules, controls and procedures related to combating Money laundering and terrorist financing.