3 days ago
Egypt, UAE Central Banks Back Banque Misr After US Action
The United States wants to limit some banking activities by Banque Misr’s branches in the United Arab Emirates.
US officials say the branches may have helped Iran move money through the international financial system.
They estimate that about $1.8 billion was processed for 103 companies during the period cited in the notice.
The proposed rule would mainly stop the UAE branches from using US banks for dollar transactions.
It would not apply to Banque Misr’s branches in Egypt or elsewhere.
The rule is not final yet because there will be a public comment period.
Banque Misr says it is reviewing the allegations and will contact the US Treasury.
Egypt and the UAE say they are cooperating and that the bank will continue serving customers under existing rules.
The UAE regulator is also conducting a detailed investigation.
The United States proposed restricting Banque Misr’s UAE operations from conducting dollar transactions through US financial institutions.
US Treasury authorities accused the UAE branches of facilitating Iranian financial activity and sanctions evasion.
The Central Bank of Egypt and the Central Bank of the UAE pledged cooperation to keep the branches operating normally.
The proposed restriction would affect only the UAE branches’ correspondent banking access, not Banque Misr’s Egypt operations or other overseas branches.
The UAE central bank launched an urgent forensic review of the branches, while the proposal remains subject to public comments.
- Who
- The United States, Banque Misr, the Central Bank of Egypt, and the Central Bank of the UAE are the main parties involved.
- What
- The United States proposed restricting Banque Misr’s UAE operations from conducting dollar transactions through US financial institutions over alleged Iranian financial links.
- Where
- The measure concerns Banque Misr branches in the United Arab Emirates and their access to US correspondent banks.
- When
- The joint statement was issued on Sunday; the proposed US measure is expected to take effect within 30 days after a public comment period if finalized.
- Why
- US authorities allege the branches helped Iranian networks access dollars, evade sanctions, and move funds internationally.
US allegations and proposed restrictions
Banque Misr, Egypt, and UAE responses
Iranian financial links
US allegations and proposed restrictions
The US Treasury alleges that Banque Misr’s UAE branches processed funds for companies potentially connected to Iranian shadow banking networks, including front companies linked to Iran’s Ministry of Defence and Islamic Revolutionary Guard Corps.
Banque Misr, Egypt, and UAE responses
Banque Misr said the proposed measures are not final, is reviewing the information and estimates seriously, and plans to seek further information from the US Treasury.
Impact on banking operations
US allegations and proposed restrictions
The United States proposes cutting the UAE branches’ access to US correspondent banks, preventing them from conducting dollar transactions through those institutions.
Banque Misr, Egypt, and UAE responses
Egypt and the UAE said the action is limited to the UAE branches’ dollar transactions and would not affect Banque Misr’s Egyptian operations, other Egyptian banks, or its other international branches.
Continued services and oversight
US allegations and proposed restrictions
US Treasury Secretary Scott Bessent said entities facilitating Iranian financial activity risk losing access to the US dollar and global financial system.
Banque Misr, Egypt, and UAE responses
The Egyptian and UAE central banks said they would coordinate to ensure business continues as usual, while the UAE regulator investigates the branches and warns banks against exposing the financial system to misuse or reputational risks.
Key facts
- Bank involved
- Banque Misr, Egypt’s second-largest bank
- US allegation
- The UAE operation allegedly facilitated Iranian access to the US dollar and international financial system.
- Estimated transactions
- Approximately $1.8 billion processed for 103 companies during the period cited by the US Treasury.
- Proposed restriction
- Loss of correspondent banking access to US financial institutions for dollar transactions by the UAE operations.
- Exempt operations
- Banque Misr’s Egyptian operations and other overseas branches would not be covered by the proposed restriction.
- Regulatory response
- The Central Bank of the UAE launched a special and urgent examination, including a forensic review.
- Current status
- The US proposal remains subject to a public comment period and a final decision.
Sources
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