UAE Takes Action on Banque Misr Branches in the Country Following US Measures

Sudanhorizon– Agencies
The Central Bank of the UAE has announced a special and urgent inspection of Banque Misr branches operating in the country following the US authorities’ announcement of a proposal to restrict their access to correspondent banking services in the United States.
The UAE Central Bank stated in a press release that it had reviewed the announcement issued by the US authorities regarding the proposed special measure concerning Banque Misr branches in the UAE, emphasizing that these branches are subject to the laws and regulations in force in the UAE.
It clarified that the Central Bank expects banks licensed in the country to avoid exposing the UAE financial system to reputational risks, to comply with the laws and regulations of the countries whose financial institutions they use for transactions, and to refrain from misusing the country’s financial infrastructure.
It emphasized that monitoring anti-money laundering and counter-terrorism financing procedures is a routine part of his duties. This includes inspecting banks and ensuring the efficiency of electronic systems for sanctions verification and other compliance systems, while requiring banking institutions to develop these procedures in accordance with applicable laws and regulations.
Regarding the branches of Banque Misr, the Central Bank of the UAE announced that it has decided to conduct a special and urgent inspection, including a thorough review of the time period mentioned in the US statement, focusing on the banking transactions of the companies named in the US document.
He added that the Central Bank is currently studying the available options regarding the bank’s status should the US measure be finalized after fulfilling the procedures stipulated in US law. He affirmed that it will make the appropriate decision at that time, taking into account the bank’s obligations to its clients in the UAE.
This UAE move comes after the Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department announced a proposal to prohibit US financial institutions from opening or maintaining correspondent accounts for Banque Misr branches in the UAE, considering it, according to the US assessment, a financial institution operating outside the United States and representing a major money laundering concern.
According to US documents, authorities tracked transactions involving approximately 103 companies suspected of being linked to Iranian shadow banking networks, totaling around $1.8 billion between January 2024 and June 2026. Washington stated that these transactions provided financial channels connected to Iran.
The proposed US measure differs from placing all of Banque Misr on a comprehensive sanctions list. The US document explicitly confirms that the measure is limited to Banque Misr’s UAE branch and does not affect the bank’s operations in any other country.
In Egypt, Banque Misr confirmed that the announced US measure pertains only to its UAE branch, and that the branch continues to provide services to its clients in accordance with applicable rules and procedures. The bank emphasized its commitment to legal and regulatory frameworks and its cooperation with relevant authorities.

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