Foreign Currency Management and Individual Rights Protection
The regulation of foreign currency management and the protection of individual rights in Egypt are governed by stringent laws that aim to preserve economic stability and prevent illegal trading activities. The crime of dealing in foreign currency is considered an intentional offense, where general criminal intent suffices—meaning it’s enough for a person to deliberately commit the act, intending the resulting consequences.
Given the importance of the legality surrounding foreign currency possession and the criminalization of its trade, the Egyptian Central Bank Law has established clear regulations. These standards govern how foreign currency is handled, including conditions for holding and trading it. This article reviews these regulations, the legal nuances of criminalizing foreign currency trading, and the legal procedures necessary to ensure justice is served.
Legal Framework for Possessing and Trading Foreign Currency
Possession of Foreign Currency:
Under Article 212 of the legislation no.194 of 2020, the Egyptian Central Bank Law guarantees every citizen the right to retain any foreign currency they receive, own, or possess. The law permits the trading and transfer of foreign currency into and out of the country, provided such transactions are conducted through accredited banks and licensed entities. This regulation ensures that all currency exchanges occur within a legally recognized framework, thereby maintaining economic order.
Criminalization of FX Trading:
Trading foreign currency outside of accredited banks and licensed entities constitutes a criminal offense under Article 233 of the Central Bank Law. Violating this law is punishable by imprisonment for a period not exceeding ten years and not less than five years, coupled with a fine of not less than 5 million Egyptian pounds and the confiscation of the involved currencies. The severity of these penalties underscores the importance the law places on maintaining legal currency transactions.
Legal Requirements for Conviction in Foreign Currency Trading Crimes
For a conviction in cases of foreign currency trading crimes, specific legal requirements must be met. According to Article 238 of the Egyptian Central Bank Law No. 194 of 2020, except in cases of flagrante delicto (where the crime is caught in the act), no criminal case or investigation may be initiated against the perpetrators without a written request from the Governor. Any violation of this provision results in the nullification of all legal procedures and any resulting outcomes.
A valid conviction requires the presence of flagrante delicto or the crime being discovered through a judicial warrant from the prosecution. This ensures that the legal process adheres strictly to the requirements of the law, safeguarding the rights of the accused. The mere presence of text or voice messages related to foreign currency on the suspect’s phone, or images of foreign currency, is insufficient to prove the crime. Instead, the crime must be established through unequivocal evidence that leaves no room for interpretation.
Case Study: Defending Against Unlawful Procedures
One of the notable cases handled by our office involved the defense of a client, S.G., who was accused by the Public Prosecution of dealing in foreign currency outside the scope of accredited banks or licensed entities. The prosecution sought to punish S.G. under Article 233 of the Central Bank Law, based on an arrest report dated 31/8/2023. The report claimed that the defendant and others were involved in transferring money in and out of the country for a commission of 2.3%.
Initially, the court of first instance convicted the defendant, sentencing him to imprisonment, a fine, and the confiscation of the involved currencies. However, our office, represented by Lawyer Maher Milad Iskandar, appealed the verdict before the Criminal Appeals Court. The appeal argued that the arrest and search were invalid due to the absence of a flagrante delicto situation and the lack of a warrant from the Public Prosecution. Additionally, the appeal pointed out that the investigation violated Articles 34 and 36 of the Criminal Procedure Law and that the referral order was null and void as it contradicted Article 238 of the Central Bank Law.
Maher Milad’s defense further highlighted that the facts of the case were implausible, presenting evidence that the defendant had been arrested at his company three days prior to the date of the alleged arrest report. Telegrams dated 28/8/2023, sent to relevant authorities, corroborated the claim that the arrest, search, and seizure of funds from the company’s safe had occurred earlier. This evidence called into question the accuracy of the arrest report dated 31/8/2023.
Upon reviewing the appeal, the Criminal Appeals Court acquitted the defendant. The court reasoned that the officer’s attempt to fabricate the presence of flagrante delicto to legitimize the unlawful procedures was unconvincing. The court concluded that the overall evaluation of the evidence cast doubt on the accuracy of the charges against the defendant, thus giving weight to his denial and the defense presented.
Conclusion
This case highlights the critical importance of adhering to the regulations governing the possession and trading of foreign currency as outlined by the Central Bank Law. Ensuring that legal procedures are followed to the letter is essential for the validity of convictions and the prevention of judicial abuses. The successful defense in this case demonstrates the importance of rigorous legal scrutiny in upholding justice and ensuring individual rights protection.
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