UAE central bank launches urgent review of Banque Misr branches after US statement

The Central Bank of the UAE has announced an urgent and special examination of Banque Misr branches operating in the country, including a comprehensive review covering the period referenced in the statement issued by US authorities. The central bank stressed that the branches are subject to all applicable laws and regulations in the UAE.

In its statement, the central bank said Banque Misr's UAE branches are governed by local laws and regulations, adding that the upcoming review will focus on the timeframe specified by US authorities in their announcement.

The Central Bank of the UAE emphasized that it expects all licensed banks in the country to avoid exposing the UAE financial system to reputational risks.

The US Department of the Treasury said it had taken action to cut off Banque Misr's UAE branches from dollar transactions over their dealings with Iran. The department added that its Financial Crimes Enforcement Network (FinCEN) has proposed a rule that would prohibit these branches from accessing correspondent banking services with US financial institutions.