Central Bank of Egypt Issues Guidance on Anti-Fraud Responsibilities

The Central Bank of Egypt (CBE) has released updated guidance detailing the roles of banks’ anti-fraud departments. This comes in addition to instructions provided on April 2, 2026, regarding the formation of specialized units for fraud management and prevention within the banking industry.

According to the CBE, the anti-fraud department is tasked with creating necessary policies, mechanisms, and procedures aimed at preventing fraud and overseeing banking operations from a fraud prevention standpoint. The bank highlighted the need for ongoing collaboration with various departments, particularly the compliance department, while ensuring that the distinct responsibilities of each department are maintained.

The central bank pointed out that when investigating potential fraud cases, the focus should be on understanding the specifics of the case, how it was executed, any potential weaknesses, and determining whether the fraud stems from internal sources or external threats. However, it clarified that this does not extend to supervisory or legal duties assigned to other departments, including those related to Money Laundering and Counter-Terrorism Financing.

The report stressed that the anti-fraud unit does not take over the essential duties of the appropriate department, which includes dealing with cases involving suspected money laundering, crimes tied to money laundering, or terrorist financing. The CBE underscored the necessity for a well-defined framework that delineates responsibilities, separates powers, and ensures effective coordination among relevant functions within each bank.

Furthermore, the CBE reinforced that the Money Laundering and Counter-Terrorism Financing Department is the official body responsible for receiving and analyzing reports on suspicious transactions connected to money laundering, terrorist financing, or the proceeds of associated crimes, including fraud.

In that regard, the CBE noted that the Central Anti-Fraud Department gathers information from the anti-fraud units of banks throughout Egypt to bolster its preventive efforts. This includes conducting research, reviewing global best practices, and enhancing awareness about the risks associated with financial fraud and how to mitigate them.

In closing, the CBE emphasized that the position of anti-fraud officer should remain distinct from other roles, urging banks to adhere strictly to the new guidelines.