The ability to trace assets across the world is becoming increasingly relevant to the business sphere as businesses continue to become progressively more global. As individuals and companies continue to move assets away from countries in which they are subject to dispute it is important that parties are able to trace assets across jurisdictions.
This Guide draws together contributions from tracing experts across a number of territories.
We hope you will find the Guide a useful resource for getting to grips with the framework in asset tracing law in each of these territories, safe in the knowledge that if further specialist advice is needed, it’s only a call or email away.
How to Use: You can use the tools below to create bespoke reports for the jurisdiction(s) and topic(s) covered. Click into single jurisdiction for one location or use the compare tool to compare multiple jurisdictions. Select the jurisdictions and topics of interest to create your unique report. You also have the option to print or download using the ellipsis button in the top right corner.
Filing a lawsuit and waiting for a final judgment to be issued by the competent court could take considerable time during which the debtor will have the opportunity to dispose of its assets. Therefore, the Civil and Commercial Procedures Law No 13 of 1968 introduced the concept of interim measures that can be issued by the competent judge to curb the debtor from dissipating its assets without any need to wait for a final judgment by the court.
Generally, real estate and its owner(s) are recorded in a real estate register. There is however no central registry; in every district, there is a register for the area (over 400 offices). The government is currently working on an ambitious project to connect all registers in a central digitalised database. Meanwhile, a creditor has no choice but to know the exact location of the property to search for it at the related registry.
Unlike real estate, there is a centralised commercial register for the identification of commercial companies, which is available to the public.
Information on the financial assets of private individuals or corporations (current accounts, savings accounts, securities trading accounts, etc.) is not available to the public. It is only allowed using judicial procedures concerning a civil or criminal case.
There is currently a growing market for companies specialising in conducting private investigations to collect, formally and informally, information about individuals or corporations’ assets.
It is highly unlikely to obtain information to identify asset holders prior to initiating enforcement proceedings. As soon as a creditor obtains an enforceable civil judgement against the defendant, they would be able to take certain procedures to identify the defendant’s assets. For example, to attach the defendant’s bank account, the applicant must notify the relevant bank of his or her debt and seek attachment through a document issued by a court bailiff. The applicant must then apply to the competent judicial authority to obtain an order obliging the bank to disclose the financial position of the defendant, which must be disclosed within 15 days of receipt of the bailiff’s submission and disclosure order.
There are two available procedures, depending on the nature of the case: (1) precautionary attachment in civil matters, and (2) asset freeze order in criminal matters.
In civil matters - precautionary attachment: A creditor can apply for a precautionary attachment, inter alia, in any case where he or she fears losing their guarantee/security. This broad definition leaves the determination of whether there is reasonable fear to the discretion of the judge (subject to issuing a reasoned decision and subject to appeal). The creditor however must also prove that their right is existing, due, and of known or approximate value.
Both the judge of urgent matters and the competent court have jurisdiction to hear and decide on urgent/temporary matters brought before them, applying the same simplified rules and procedures of urgent matters. Thus, the defendant can be requested to attend within 24 hours or from hour to hour in case of necessity. An appeal must be made within 15 days as opposed to the standard 40 days appeal time. A judgement, rendered as an urgent matter, is enforceable even if it is being appealed.
When enforcing a final civil judgement, precautionary attachments do not require a court decision. They can be conducted by a court bailiff following the satisfaction of certain legal requirements.
In criminal matters – asset freeze order:
Article 208 (A) Bis of the Criminal Procedures Rules provides criminal courts (and prosecution in urgent situations) the discretionary power to order asset freeze, where the said asset is related to a crime.
The Article above requires certain conditions to be met and mandatory procedures to be followed, most importantly:
There must be sufficient evidence established on the gravity of the criminal charge.
Precautionary measures must be needed to retain the funds owned by the accused person, including preventing him or her from the disposal or management of such funds.
Such orders are only allowed in connection to certain crimes (stipulated exclusively in the said Article), as well as in crimes where the law requires that the court orders the return of the funds or value of objects subject to the crime, or the compensation of the victim. The latter situation is in accordance with the general principles of Egyptian law that preserve the rights of bona fide third parties in the seizure and confiscation of criminal proceeds.
The Public Prosecution must submit the matter to the competent criminal court to issue an order to this effect.
In cases of necessity or urgency, the Public Prosecution may issue a temporary injunctive order to prevent the accused and his/her spouse or children from disposing of or managing their funds. And in all cases, the Public Prosecution must submit the injunctive order to the competent criminal court within a maximum of seven days from the date of issue, requesting the court to render a judgment to prevent the disposal or the management of the funds, otherwise the said temporary injunctive order shall be deemed to never have been issued.
Precautionary attachment orders cover moveable assets only, which are within the jurisdiction of Egyptian courts. Asset freeze orders, in relation to criminal matters, cover both moveable and immovable assets.
A search order is not available under civil procedures, as it is exclusively reserved for criminal matters. In case of a crime that is connected to a civil claim (e.g., fraud or bribery), the party concerned may only recourse to the prosecution to press criminal charges. The prosecution, consequently, if all conditions are met, can take the necessary procedures to issue a search order and trace assets.
If the Egyptian courts have jurisdiction to issue the asset freeze/attachment order (i.e., the asset being in Egypt), it is irrelevant on which legal basis the main dispute is founded (subject to public order considerations).
In civil matters: A party seeking to enforce a civil foreign judgement must first obtain an exequatur.
Foreign judgments can then be enforced in accordance with the same requirements for the enforcement of domestic judgments.
The court will not render an enforcement order unless the following conditions are satisfied: (1) the foreign court had jurisdiction to decide on the dispute; (2) the concerned parties were duly notified and represented in the proceedings; (3) the relevant judgment was final as per the law of the court rendering the judgment; and (4) the judgment does not contradict any existing judgment or order rendered by an Egyptian court and is not in contravention of public policy or morality in Egypt.
In criminal matters:
The Egyptian competent authorities (largely the Public Prosecution) can freeze or seize property upon a foreign request where the same set of measures and procedures available in domestic criminal proceedings are available in the context of mutual legal assistance. The Public Prosecution has the discretion to refuse the cooperation or to lift the provisional measures if it does not receive sufficient and timely information from the requesting State.
Foreign criminal judgements are enforceable, provided that, inter alia, (1) the judgement is final, and (2) there are reciprocity treaties between Egypt and the foreign state where the judgment was rendered.
Disclaimer: This guide contains summaries of general principles of law. It is not a substitute for specific legal advice and should not be relied upon in relation to the application of the law or subject matter covered.
