The Central Bank of the United Arab Emirates has initiated an urgent investigation into the Emirati branches of Egypt’s state-owned Banque Misr following a U.S. Treasury Department move to block the lender’s access to the dollar clearing system.
The U.S. action, announced Friday, alleges that Banque Misr UAE served as a critical node facilitating Tehran’s access to foreign currency. The U.S. proposal, part of Washington’s broader ‘Operation Economic Outcast,’ targets the bank’s operations in the UAE specifically and does not extend to its primary operations in Cairo or other international branches.
The proposed rule is subject to a 30-day public comment period. The Central Bank of the UAE stated it would conduct a special and urgent examination of transactions, including a forensic review covering the period referenced in the U.S. statement. The regulator emphasized that banks licensed in the UAE must avoid exposing the country’s financial system to reputational risks and is assessing regulatory options if the U.S. measure takes effect while ensuring customer obligations in the UAE are met.
