Banque Misr UAE Operations Continue Normally Despite US Money-Laundering Scrutiny, Regulators Confirm

The UAE Central Bank and the Central Bank of Egypt announced on Sunday that branches of Banque Misr operating in the Emirates continue to conduct all of their business as usual. This announcement follows recent money-laundering concerns raised by the United States. Specifically, the US Treasury Department's Financial Crimes Enforcement Network put forward a proposed rule that aims to revoke Banque Misr UAE’s correspondent banking access to US financial institutions.

In response, the UAE Central Bank stated it would carry out a special and urgent examination concerning the activities of Banque Misr branches. According to its official website, Egypt's Banque Misr maintains five branches in the UAE. The Central Bank noted in a Saturday statement that the investigation into the Egyptian lender will feature a forensic and in-depth lookback covering the specific period mentioned in the statement from US authorities, focusing particularly on the banking transactions of the companies referenced.

Addressing the situation, the central banks of the UAE and Egypt released a joint statement on Sunday highlighting their ongoing co-operation. The joint statement explained that both institutions are closely following up on the proposal issued by the US Department of the Treasury regarding the special regulatory measure for Banque Misr branches in the UAE. The Central Bank of the UAE and the Central Bank of Egypt affirmed their full and continuous co-operation and co-ordination, reiterating that all business operations remain normal. Furthermore, the authorities confirmed that the branches of Banque Misr in the UAE will implement all necessary actions and measures within the designated timeframe.