Today's Edition
ABU DHABI (ALETIHAD)
The Central Bank of the UAE (CBUAE) has ordered an urgent probe into the operations of Banque Misr’s branches in the UAE following proposed measure against them by the US government.
The CBUAE said it had decided to carry out a “special and urgent examination” of the bank’s UAE branches, including a forensic and in-depth review covering the period cited by the US authorities.
The examination will focus particularly on transactions involving the companies identified in the US statement.
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) on Friday proposed cutting Banque Misr’s UAE branches off from correspondent banking access to US financial institutions over alleged dealings linked to Iran.
The US Treasury said the branches processed about $1.8 billion between January 2024 and June 2026 for 103 companies potentially linked to Iranian shadow-banking networks. The proposed measure has not yet been finalised.
The CBUAE said it had reviewed the US authorities’ statement and stressed that Banque Misr’s branches operating in the country are subject to UAE laws and regulations.
The CBUAE said banks licensed in the UAE are expected to avoid exposing the country’s financial system to reputational risks, comply with the laws and regulations of countries whose financial institutions are used to conduct transactions, and not misuse the UAE’s financial infrastructure.
It added that it periodically examines anti-money laundering and counter-terrorism financing procedures at banks operating in the UAE, including the effectiveness of sanctions-screening systems, and requires banks to strengthen such controls where necessary.
The CBUAE said it is also studying the options available regarding the status of Banque Misr’s UAE operations if the proposed US measure is ultimately imposed after completion of the procedures required under US law.
“The appropriate decision in this regard will be taken in due course, taking into consideration the obligations of the bank towards its customers in the UAE,” the CBUAE added.
