UAE central bank launches urgent review of Banque Misr branches after US statement

The Central Bank of the UAE has launched an urgent review of Banque Misr branches operating within the country, following US allegations related to transactions with Iran. This special examination aims to conduct a thorough assessment of the branches' activities, particularly concerning the timeframe mentioned in a statement released by US authorities.

The central bank reiterated that the branches must comply with all applicable UAE laws and regulations. In a statement, the central bank clarified that UAE branches of Banque Misr adhere to local laws and regulations. The upcoming review will concentrate on the specific period identified by the US authorities in their announcement.

The Central Bank of the UAE emphasized its expectation that all licensed banks in the country should prevent any exposure of the UAE financial system to reputational risks. The US Department of the Treasury announced it had taken steps to sever Banque Misr's UAE branches from dollar transactions due to their dealings with Iran. The Financial Crimes Enforcement Network (FinCEN) within the US Department proposed a rule that would prevent these branches from accessing correspondent banking services with US financial institutions.