Free xml sitemap generator Compliance Knowledge Platform - Community | 12 year sentence and $2.2m fine for Egyptian PEP

12 year sentence and $2.2m fine for Egyptian PEP

by Helen  (Fri, May 06 2011 17:32)

A court in Egypt has sentenceed Hosni Mubarak's former interior minister to a 12 year jail term for laundering the proceeds of crime earned from corrupt deals, the Egyrptian press has reported. Habib al-Adli faces further charges of murdering protesters during the popular uprising of February this year. He's the first of 12 fomer ministers on trial to be convicted of crimes he committed in office. As a politically exposed person, al-Adli should be on every bank's high risk customer list and canny anti-money laundering officers will be setting screening parameters to catch transactions connected to Adli, hs family and associates.

In addittion to the sentence, the court slapped a E£13m (US$2.2m) fine on al-Adli. The lenthy sentence and large fine makes an example of the fomer chief of security, who has told the press he will appeal against the decision. Nonetheless, the court has set the benchmark for penalties and sentences which will increase for more serious offences and will be giving the remaining 18 PEPs awaiting trial more than a little to think about.

Broken down, Al-Adli received a seven year sentence and E£4.8m (US$800,000)  for embezzling the public coffers and a five year term and E£9.6m (US$1.6m) fine forlaundering. Prosecutors accused him of using his ministerial status to engineer a land sale from which he later profited.

The PEP list

The others on trial for corruption include a former prime minister, the speakers of parliament's two chambers and Mubarak's two sons. The European Union issued sanctions against Egyptian targets in March, orderng banks to freeze assets belonging to Mubarak and 18 Egyptian former ministers, associates and family members. Full details including names and aliases, secondary identifiers and the grounds for designation appear in the Official Journal of the European Union of March 22nd. AML officers should take note that the names used by the accused to hide cash may be variations of the version printed in the journal and should set monitoring systems accordingly.

Although the murder trial will take time to get to court,  the Egyptian courts have succeeded in bringing a record time conviction for money laundering, which ensures al-Adli will remain behind bars.




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Corruption | Fraud | PEPs | Sanctions


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