Law No. 17 of 2020 amending some provisions of Anti-Money Laundering Law No. 80 of 2002
May 18, 2020
Salma Ahmed El-Nashar, Associate
AbdulRahman Abdul Jaleel, Junior Associate
Mahmoud Yassin Daifulaa , Trainee
In the name of the people,
The President of the Republic,
The Parliament approved the following law, and we hereby enact it.
The definition stated in article (1/ clause a), and in articles (14, 16 bis), in Anti- Money Laundering Law No. 80 of 2002, shall be substituted with the following definitions:
Article (1/ Clause A):
(A) Funds and assets:
All physical and virtual assets, economic resources, including oil and other natural resources, properties, national or foreign currencies, debt securities or commercial papers with any value, type in any manner in which they had been obtained, whether material or moral, movable or immovable, also legal instruments, papers and all documents with any kind including any of the above mentioned, in any form whatsoever digital or electronic, and all rights related to any of it, including banking credit, traveller’s cheques, bank cheques, documentary credits, or any revenues, profits or any other sources of income coming through this funds and assets, and any other assets were meant to obtain funding, products or services, it also includes virtual assets that have a digital value, and could be exchanged, transferred digitally, and may be used as a payment or investment tool.
Whoever commits or attempts to commit a money laundering crime stipulated under Article (2) of this law, shall be punished by imprisonment for a period not exceeding seven years and shall also pay a fine equivalent to twice the funds that was the subject of the crime. This crime shall be excluded from the application of the provisions of the second paragraph of article (32) of the Penal Code.
Without prejudice to the provisions of the laws regulating the work of financial institutions, liberal professions and non-financial business, the competent control authorities referred to under article (7) of this law, shall undertake the following measures against entities and affiliated bodies under their control, in case of violating the provisions of this law or the decisions, the mechanisms, the rules and the regulations issued for its execution:
- Obligation to clear up the violation, and take corrective measure within a specified period.
- Prohibition of business activity or its suspension or its restriction or its stop for a period not exceeding one year.
The executive regulation of this law shall determine the regulations of its enforcement.
The word “funds” shall be replaced by the term “funds and assets” wherever it appears in the aforementioned Anti-money Laundering Law.
Also, the word “immediately” shall be replaced by the word “expeditiously”, stated under the first paragraph of Article eight (8) of the same law.
New articles and provisions shall be added to the aforementioned Anti-money Laundering Law;
Article No. (1/ clause z), (9 bis), (14 bis), (14 bis/1), (17 bis), (18 bis), (18 bis/1), (18 bis/2) (18 bis/3), as follows:
Article (1/ clause z) :
(z) Entities :
Means the entities concerned with Anti-money Laundering and related crimes, or terrorism financing, determined by the executive regulation of this law.
Article (9 bis):
All entities, each within its jurisdiction, shall maintain comprehensive statistics that guarantee the effectiveness and efficiency of Anti-money Laundering and terrorism financing systems, as determined by the executive regulation.
Article (14 bis):
In case of violation of Article (2) of this law, confiscation of the seized funds and assets resulted from money laundering crime or the original crime shall be ordered. The confiscation shall include the following:
- Laundered funds and assets.
- Proceeds, including income or other earnings arising from these proceeds.
If the proceeds have been intermingled with money acquired by legitimate resources, it is to be confiscated the amount equivalent to the estimated value of the proceeds, or the modes used or prepared to be used in money laundering crimes, or the original crimes.
An additional fine, equivalent to the value of the funds and assets, shall be imposed in case of the impossibility to seize such funds and assets, or if they were disposed of to a good-faith third party.
Article (14 bis/ 1):
Whoever violates any of the provisions of article (12) of this law, shall be punished by imprisonment for a period not exceeding three months, and a fine not less than the sum of money that was the subject of the crime, provided that it doesn’t exceed four folds that amount, or each of these two penalties.
In all cases, sums of money and things that are the subject of that action, shall be seized, and confiscated. If they were not seized, an additional fine equivalent to their value shall be imposed.
Article (17 bis):
Without prejudice to the rights of the good-faith third party, the Attorney-General and the Military Attorney-General, as the case may be, upon request from the Chairman of the Board of Trustees of the unit, in case of necessity or in case of emergency, may impose conservatory measures including freezing or seizure, to prevent the disposal of funds and assets which are linked to the money laundering crimes and related original crimes or terrorism financing.
Provisions of the articles 208 bis (a) to 208 bis (e) of the Code of Criminal Procedures shall be followed in the issuance of the measures mentioned in the first paragraph of this article, also in the procedures for its appealing.
Article (18 bis):
Entities are committed, automatically or upon request from the counterpart entities in the other countries, to provide the maximum possible international cooperation for combating money laundering and related original crimes or terrorism financing. This shall be done in accordance with the fundamental principles of the state legal system, in a manner that ensure the confidentiality of this cooperation.
Article (18 bis/1):
The entities are exclusively authorized to use the information that they have obtained, through the judicial cooperation in the field of money laundering crimes and related original crimes or terrorism financing, for the purpose for which they were requested, unless otherwise a pre-authorization is obtained from the foreign counterpart authority that has provided such information. Under such case, the entities shall inform the authority that cooperated with them, in due course, of the usage of such information and the effects thereof, in accordance with what is stipulated in the executive regulation of this law.
Article (18 bis/2):
Mutual judicial assistance cannot be refused on the grounds of the rules of confidentiality which are binding to the financial institutions, or for the mere reason that the crime involves taxation matters, and this shall be done in accordance with the fundamental principles of the state legal system.
Article (18 bis/3):
The entities may conduct queries on behalf of their counterpart foreign entities, and exchange the maximum possible of collected information, in accordance with the fundamental principles of the state legal system determined by the executive regulation of this law.
The term “And related original crimes” shall be inserted after the term “money laundering” stated in article (18) of the mentioned Anti-money Laundering law.
The fourth paragraph, of article (12) of the mentioned Anti-money Laundering law, shall be omitted.
This law shall be published in official gazette, and shall come into force in the day following its publishing.
This Law shall be stamped by the seal of the state and shall be enforced
as one of its laws.
Promulgated at the Presidency of the Republic on 16 Rajab,
1441 H., corresponding to 11 march 2020 AD.