Egypt’s position as a regional economic hub and gateway between continents creates both significant opportunities and substantial financial crime risks. The country’s vast informal economy, estimated to represent a substantial portion of total economic activity, provides numerous channels for money laundering and tax evasion. The strategic importance of the Suez Canal and Egypt’s role as a trade corridor expose it to trade-based money laundering schemes, while its complex banking sector and emerging fintech landscape present both modernisation opportunities and regulatory challenges.

Key vulnerabilities stem from the country’s cashintensive economy, limited beneficial ownership transparency, and regulatory gaps in designated nonfinancial businesses and professions (DNFBPs). The tourism sector, while economically vital, presents risks through cash transactions and potential exploitation by criminal networks. Egypt’s geographic position makes it vulnerable to regional instability spillovers, including refugee flows that strain formal systems and potentially increase informal financial activities.