E-Paper
Sign In
UAE Central Bank orders probe into Banque Misr branches after US money laundering warning
The regulator said Banque Misr’s UAE branches must follow local laws, warning banks against exposing the financial system to reputational risks
- PUBLISHED: Sat 29 Aug 2026, 9:44 PM UPDATED: Sun 30 Aug 2026, 11:21 AM
The Central Bank of the UAE (CBUAE) says it is studying options on the Egyptian lender's status in the UAE after US authorities proposed a special measure over money laundering concerns.
The CBUAE has ordered a special and urgent examination of Banque Misr’s branches in the country, a day after US authorities issued a statement proposing a special measure against the Egyptian lender over concerns it poses a primary money laundering risk.
Recommended For You
In a statement, the CBUAE said it had reviewed the notice issued by US authorities regarding the proposed action against Banque Misr's UAE branches, which the US had identified as a financial institution operating outside the United States of primary money laundering concern.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
The regulator stressed that Banque Misr's UAE branches remain subject to the laws and regulations in force in the country and reiterated that banks licensed in the UAE are expected not to expose the country's financial system to reputational risks. It added that lenders must respect the laws and regulations of the countries whose financial institutions they use to conduct transactions and must not misuse the UAE's advanced financial infrastructure.
On August 28, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to US financial institutions under Operation Economic Outcast targetted at Iranian regime.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” said Secretary of the Treasury Scott Bessent.
“We also warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system. Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime,” it said in a statement on Friday.
According to the US Department of the Treasury, since Iran is already subject to comprehensive US sanctions, it relies on multi-jurisdictional shadow banking networks that provide key access to US dollar correspondent banking relationships. “Iran uses these shadow banking networks to launder funds, procure weapons, and bankroll its regional terrorist proxy groups.”
The CBUAE said it periodically examines anti-money laundering and counter-terrorism financing (AML/CFT) procedures at banks operating in the UAE, and verifies the effectiveness of sanctions screening and other compliance systems. Banks are required to strengthen these procedures in line with applicable laws and regulations, it said.
The CBUAE said it periodically examines anti-money laundering and counter-terrorism financing (AML/CFT) procedures at banks operating in the UAE and verifies the effectiveness of sanctions screening and other compliance systems. Banks are required to strengthen these procedures in line with applicable laws and regulations, it said.
As part of its response, the central bank has decided to carry out a special and urgent examination of Banque Misr's UAE branches, including a forensic, in-depth lookback covering the period referenced in the US statement. The review will focus specifically on banking transactions linked to the companies named in the US authorities’ statement.
The CBUAE said it is currently studying the options available regarding the bank's status in the UAE, should a decision be taken to impose the special measure following the completion of procedures under US law. Any decision will be made in due course, the regulator said, taking into account the bank's obligations towards its customers in the UAE.
