The Central Bank of the UAE (CBUAE) has ordered a special and urgent examination of Banque Misr's branches in the country, a day after US authorities proposed a measure against the Egyptian lender over concerns that it poses a money laundering risk.

On 28 August, the US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) proposed a rule that would revoke the correspondent banking access of Banque Misr's UAE branch to US financial institutions. The move falls under Operation Economic Outcast, an initiative the US Treasury has tied to efforts targeting Iran's financial networks.

US Treasury Secretary Scott Bessent said the department was continuing efforts to sever economic access points linked to Iran, describing the action against Banque Misr's UAE branch as an initial step in a broader accountability effort.

In a statement, the CBUAE said it had reviewed the notice issued by US authorities identifying Banque Misr's UAE branches as a financial institution of primary money laundering concern operating outside the United States.

The regulator said Banque Misr's UAE branches remain subject to the laws and regulations in force in the country. It added that banks licensed in the UAE are expected not to expose the UAE's financial system to reputational risk, and that lenders must comply with the laws of the countries whose financial institutions they use to conduct transactions.

(Source: Lovin Dubai)