REGULATION WATCH- Brokerages now need to appoint a dedicated anti-money laundering czar: Brokerage companies have received a letter from the Financial Regulatory Authority (FRA) ordering them to hire professional auditors to monitor whether their operations are being used to facilitate money laundering and terror financing, Al Mal reported. The decision stipulates that appointees must have three years of experience in risk management and auditing, one brokerage chairman told the newspaper.

Just how feasible is this? A managing director at an unnamed brokerage firm told the newspaper that the company could struggle to afford the salary of a risk management officer, particularly given the limited pool of candidates. Casting doubt on whether there are enough risk management officers to join all of Egypt’s 90 brokerages, they said that brokerages could end up paying anything between EGP 20-40k to meet the new requirements.

The move seems to be part of a coordinated effort to combat money laundering and terror financing: The House earlier this week gave preliminary approval to amendments to the Anti-Money Laundering Act that would expand the list of assets that can be used in money laundering to include securities. The FRA also signed a cooperation agreement with the central bank to combat money laundering and terrorist financing last year.