UAE Central Bank Decides to Conduct Urgent Inspection of Bank Misr Branches After U.S. Action

The Central Bank of the United Arab Emirates decided to conduct a special and urgent inspection of Bank Misr branches operating in the country, following the announcement by U.S. authorities of a proposal to restrict the bank's access to dollar correspondent banking services, based on transactions that Washington said were linked to Iranian shadow banking networks.

The UAE Central Bank, today Saturday, said it had reviewed the statement issued by U.S. authorities regarding the proposed special measure concerning Bank Misr branches in the UAE, which it classified as a financial institution operating outside the United States and a primary source of concern related to money laundering.

It affirmed that the bank's branches are subject to the laws and regulations in force in the UAE, emphasizing that it expects licensed banks not to expose the country's financial system to reputational risks, and to respect the laws of countries that use their financial institutions to conduct transactions.

He added that he is assessing the available options regarding the bank's status if the special measure is decided upon after fulfilling procedures in accordance with U.S. laws, confirming that he will take the appropriate decision at that time while considering the bank's obligations to its clients in the UAE.

The U.S. Treasury Department said that the bank represents, according to its estimates, a key point for the Iranian system to access dollars, noting that it processed transactions amounting to about $1.8 billion on behalf of 103 companies that are likely part of Iranian shadow banking networks between January 2024 and June 2026.

Bank Misr confirmed that the action is limited to its branch in the UAE and does not extend to its operations in Egypt or other overseas branches, while the Egyptian Central Bank announced that it and the Ministry of Foreign Affairs are in contact with the U.S. side regarding the matter.