The government wants U.S. banks to comb their books for money linked to possibly corrupt deals by deposed Egyptian President Hosni Mubarak and his government, The Associated Press reports.
The agency that polices financial crimes said Thursday that banks should sift through accounts linked to Mubarak, his relatives and other Egyptian political figures for “misappropriated or diverted state assets, proceeds of bribery or other illegal payments, or other public corruption proceeds.”
Mubarak and officials from his government are widely suspected of amassing billions during his 30-year rule through kickbacks, shady deals and the privatization of state-run companies that began in the 1990s. Some former ministers have had their assets frozen pending investigation into corruption allegations.
Egypt’s Central Bank had capped all transfers at $100,000, to stave off a wave of transfers.
Yet much of the money already has left Egypt. Thursday’s guidance, from the Financial Crimes Enforcement Network, says banks should watch for “increased movement of assets that may be related to the situation in Egypt as the Egyptian government goes through a period of transition.”
Rules require that banks tell the government about suspicious financial transactions. It cites a rule based on the USA Patriot Act that requires extra scrutiny of accounts linked to senior foreign political figures.
FinCEN issued similar guidance last month regarding assets linked to ousted Tunisian president, Zine el-Abidine Ben Ali.
FinCEN is the Treasury Department agency that administers the Bank Secrecy Act, the main U.S. anti-money laundering law. The agency collects reports from banks of suspicious financial activities.
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