UAE Central Bank Announces Special and Urgent Inspection of Bank Misr Branches

The Central Bank of the United Arab Emirates announced on Saturday that branches of Bank Misr operating in the UAE are subject to the laws and regulations in force in the country, and that it had decided to conduct a special and urgent inspection after learning of a statement issued by US authorities regarding a “special measure” proposal concerning these branches. The Emirates News Agency (WAM) quoted the Central Bank as saying the inspection would include a thorough review of the period mentioned in the US statement, with a focus on the banking transactions of the companies listed therein. The Central Bank added that it is currently reviewing the available options regarding the status of Bank Misr’s branches in the UAE “in the event that the special measure is imposed against them after completing the procedures in accordance with US laws, and the appropriate decision will be taken at that time, taking into account the bank’s obligations toward its clients in the UAE.”

The UAE Ministry of Foreign Affairs announced on August 18 the suspension of all activities, commercial exchanges, and financial transactions with Iran until further notice, in light of regional escalation that it said “undermined regional and international peace and security.” The United States accused the UAE branch of Bank Misr of conducting transactions with Iran, while the Central Bank of Egypt stated that it and the Egyptian Ministry of Foreign Affairs were in contact with Washington regarding the related US measures. The Central Bank of Egypt commented on the US statement, saying in a statement that the bank and the Egyptian Ministry of Foreign Affairs were in contact with the US side regarding these measures. The Central Bank of Egypt emphasized that the measure is limited to transactions of Bank Misr’s UAE branch with US dollar correspondents only, and that none of these measures extend to any of the banks in the Egyptian banking sector, including Bank Misr in the Arab Republic of Egypt or any of its other foreign branches. The Central Bank of Egypt stressed the “strength and resilience” of all banks operating in Egypt.