The Central Bank of the UAE and the Central Bank of Egypt issued a joint statement on Sunday, confirming their ongoing collaboration regarding the operations of Banque Misr’s branches within the Emirates. Both institutions emphasized that the branches continue to conduct all business as usual.
This announcement follows a proposal introduced on August 28 by the US Treasury’s Financial Crimes Enforcement Network (FinCEN). The proposed regulatory measure seeks to revoke the correspondent banking access of Banque Misr’s UAE operations to US financial institutions. The US Treasury alleges that these branches have served as a conduit for Iran to access foreign currency, though it clarified that this measure does not impact any other Egyptian banking entities.
In response to the US proposal, the Central Bank of the UAE announced on Saturday that it has initiated a special and urgent examination of the bank’s local operations. This probe includes a forensic lookback covering the specific period referenced in the US statement, with a particular focus on transactions linked to the companies identified by American regulators.
The UAE regulator stated that it expects all licensed financial institutions to protect the national financial system from reputational risks and to strictly adhere to the laws of jurisdictions involved in their transactions. Furthermore, the Central Bank of the UAE is currently evaluating various regulatory options concerning the status of Banque Misr should the US measure be formally implemented.
Despite these ongoing investigations, the joint statement from the two central banks underscored their commitment to full and continuous coordination. The regulators noted that Banque Misr’s UAE branches are expected to take all necessary actions and measures within the timeframe specified for such compliance.
The UAE Central Bank also provided assurances that it is working to ensure the bank’s obligations to its customers in the UAE continue to be met throughout this process. Banque Misr currently operates five branches across the UAE, located in Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah.
The US government’s move is part of a broader campaign intended to sever the Egyptian lender’s UAE operations from the American financial system. Washington’s stated objective is to exert pressure on Iran to end its involvement in the ongoing conflict in the Middle East. The report also notes that speed, plans, how UAE residents can pre-order Starlink satellite internet; cost. The report also notes that turkey, Saudi Arabia, Pakistan to hold first defence pact meeting, source says. The report also notes that etihad Rail sells over 100,000 tickets; Dubai station to see more people use trains daily. The report also notes that iran’s economy under strain as US tightens sanctions amid war. The report also notes that stay up to date with the latest news. The report also notes that covering real estate, aviation and other business stories that directly affect the lives of UAE consumers, waheed Abbas is Assistant Editor. The report also notes that too, he frequently reports human interest stories.
Source: Khaleej Times
