FRA holds AML/CTF workshop for officers at supervised companies

The Financial Regulatory Authority (FRA) organised a workshop for officers responsible for Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) at companies subject to its supervision and oversight. The workshop aimed to familiarise participants with the due diligence procedures issued by the Anti-Money Laundering and Terrorist Financing Unit last September, as part of efforts to strengthen compliance with relevant regulatory requirements.

FRA Chairperson Islam Azzam said that the Authority’s recently issued Circulars Nos. 5, 8 and 10 of 2026 set out several obligations to ensure the proper implementation of due diligence procedures. These requirements aim to align the objectives of the Unit and the Authority in raising awareness of the latest fraud and money laundering methods, while facilitating the early detection of risks through the updating of companies’ internal policies and identity verification forms.

For his part, Hamdy Badawy, FRA Assistant Chairperson, stressed at the beginning of the workshop the importance of complying with these requirements to prevent the misuse of non-banking financial activities for illicit purposes and strengthen confidence in financial markets.

He also highlighted the need to comply with relevant regulations and decisions in line with international frameworks governing financial activities, as well as the mandates of international and regional financial action task forces. He further outlined the various stages of examination and verification, from identifying suspicious cases to taking the necessary measures and actions.

The workshop was delivered by Maha Kenz, Head of the Central Administration for Combating Money Laundering and Terrorist Financing, who reviewed the key updates, including the addition of ongoing transaction monitoring to customer due diligence procedures.

She also emphasised the importance of regularly updating customer data and information to enhance financial institutions’ ability to monitor transaction patterns, detect unusual activities and address potential risks.

The workshop covered the main elements of customer due diligence procedures, focusing on identifying customers and beneficial owners and verifying their identities, screening against negative lists, and adopting a risk-based approach to risk assessment and management in line with the nature of customers, activities and transactions conducted by financial institutions.

Participants were also briefed on requirements applicable to financial institutions’ employees, including integrity and competency screening, which involves conducting checks upon recruitment and throughout their employment. The workshop further highlighted the requirement to apply the same customer due diligence procedures to employees when they seek to obtain any of the products or services offered by their institutions.

The workshop also reviewed requirements governing customer acceptance policies, including their documentation, approval by boards of directors and review at least once every two years or whenever necessary. Such policies must describe the categories of customers an institution intends to serve based on its risk assessment, as well as the mechanisms for relying on third parties, the conditions financial institutions must meet when engaging with them, and the limits of such arrangements.

Discussions also covered procedures applicable to financial groups and the importance of implementing consistent AML/CTF controls across their subsidiaries. In addition, the workshop addressed requirements for institutions operating in the insurance sector, taking into account the nature of their products and services and the risks associated with them.

The workshop further emphasised the importance of AML/CTF officers at companies subject to the FRA’s supervision and oversight keeping abreast of the latest updates and working to align their internal policies and procedures accordingly. It also highlighted the need to enhance the effectiveness of internal monitoring and control systems and raise employees’ awareness of AML/CTF requirements.

The FRA is expected to organise similar workshops in the future for companies and entities under its supervision as part of its efforts to strengthen compliance across non-banking financial activities, mitigate risks, maintain market stability and protect the rights of market participants.