CAIRO, Aug 30 – Egypt’s Banque Misr is reviewing a US Treasury measure targeting its UAE branches over alleged dealings linked to Iranian shadow-banking networks, while the UAE central bank has launched an urgent examination of the bank’s operations in the country.
The US Treasury on Friday proposed cutting Banque Misr’s UAE branches off from correspondent banking services provided by US financial institutions. The action relates to transactions that Washington says were connected to Iranian shadow-banking networks.
Banque Misr said its UAE branch continues to provide banking services to customers under the applicable rules and procedures while it assesses the US Treasury notice.
The UAE Central Bank subsequently announced a “special and urgent examination” of Banque Misr’s branches in the country. The review will include a forensic and detailed examination of transactions during the period identified by US authorities, with particular attention to dealings involving companies named in the US statement.
“The Central Bank expects banks licensed in the UAE not to expose the UAE’s financial system to reputational risks, to respect the laws and regulations of the countries whose financial institutions are used in conducting transactions, and not to misuse the advanced financial infrastructure of the UAE,” the central bank said in a statement.
The regulator also stressed that Banque Misr’s UAE operations remain subject to UAE laws and regulations. It said the investigation would assess the transactions identified by US authorities and determine whether further regulatory action is necessary.
The central bank is also considering the implications for Banque Misr’s status in the UAE if the proposed US measure is ultimately implemented following the relevant legal process.
The action against Banque Misr comes as Washington increases pressure on financial networks accused of facilitating transactions involving Iran. The US Treasury’s proposed restriction could affect the bank’s ability to conduct dollar-denominated transactions through correspondent relationships with US financial institutions, although the measure remains subject to the applicable legal process.
For Banque Misr, the development creates a potential cross-border compliance and correspondent-banking challenge. Its UAE branches operate within the UAE regulatory framework while also depending on access to international financial infrastructure, making the outcome of the US and UAE reviews significant for the bank’s regional operations.
The UAE central bank’s forensic examination is expected to provide greater clarity on the transactions that prompted the US action and whether any additional measures will be required under UAE regulations.
