The Central Bank of the UAE has opened an urgent investigation into Banque Misr's Emirati branches after the U.S. Treasury moved to cut the Egyptian lender off the dollar clearing system over alleged ties to Iran. The review covers more than two years of transactions and could affect the bank's regulatory status in the UAE.
UAE central bank orders forensic review
The Central Bank of the United Arab Emirates said it will launch a special and urgent examination of Banque Misr's Emirati transactions. The review follows a U.S. enforcement action announced Friday and covers a period of more than two years highlighted in that action.
According to Investing.com: "has decided to conduct a special and urgent examination". The regulator said its review includes a forensic lookback focused on the banking transactions of the companies named in the U.S. statement.
Treasury cites Iran links
The move comes after the U.S. Treasury's Financial Crimes Enforcement Network designated Banque Misr's UAE unit a critical node for Tehran's access to foreign currency. The proposed rule forms part of Washington's Operation Economic Outcast campaign targeting Iranian financial channels. It is now subject to a 30-day public comment period.
The action targets only Banque Misr's Emirati operations. It does not extend to the bank's primary operations in Cairo or its other international branches.
Regulator weighs Banque Misr's status
The UAE central bank said it expects licensed banks not to expose the country's financial system to reputational risk. As a result, it is evaluating regulatory options for Banque Misr's status should the U.S. measure take effect, while working to ensure customer obligations in the UAE continue to be met.
Source: Investing.com
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