UAE investigates Egypt’s Banque Misr after U.S. moves to block dollar clearing

The Central Bank of the United Arab Emirates announced it will launch a prompt investigation into Banque Misr's branches operating in the UAE, following the U.S. Treasury Department's decision to block the lender's operations from the dollar clearing system due to alleged connections to Iran. The UAE central bank stated that it will conduct a special and urgent review of the Egyptian bank's transactions over a two-year period, as highlighted in the U.S. enforcement action.

This move follows the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) designating Banque Misr UAE as a critical node for Tehran's access to foreign currency. The UAE central bank expects banks licensed in the UAE to avoid exposing the country's financial system to reputational risks and is considering regulatory options regarding Banque Misr's status if the proposed U.S. measure takes effect, while ensuring customer obligations in the UAE are met.

The U.S. action, part of Operation Economic Outcast targeting Iranian financial channels, is limited to Banque Misr's Emirati operations and does not affect the bank's main operations in Cairo or other international branches.