Financial Authority head: Certificates with sukuk bonds could prevent money laundering

Ashraf al-Sharqawy, head of the Financial Supervisory Authority, has requested that personal certificates be issued for Islamic sukuk bonds in order to prevent money laundering.

He told the Shura Council’s Financial Committee on Tuesday to delete the maximum fine of LE20 million set forth in Article 25 of the sukuk draft law to prevent profiteering.

He added that the sukuk idea was already considered in the law on capital, issued in 1992.

Committee Chairman Mohamed al-Fiqi said the sukuk bonds are not to serve any particular faction, but the whole of Egypt, adding that the country's fixed assets would not be sold or mortgaged.

He also asked why Article 21 stipulates that sukuk holders form a “group” whose purpose is to protect the common interests of its members, suggesting the term be changed so that it's not misinterpreted to mean the Muslim Brotherhood. Mohamed Maher, head of the Egyptian Stock Exchange, replied that it is a common financial term.

Edited translation from Al-Masry Al-Youm

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