UAE Central Bank: Special and urgent inspection of Bank of Egypt branches - Sarmad
The Central Bank of the United Arab Emirates stated that it had reviewed the statement issued by U.S. authorities regarding the proposed special measure concerning the branches of Bank Misr operating in the UAE, which was designated as a financial institution operating outside the United States with primary money laundering concerns. The central bank announced it would conduct a “special and urgent inspection” of the bank’s branches.
The central bank affirmed that Bank Misr’s branches in the UAE are subject to the laws and regulations in force in the country, according to the official news agency, WAM.
It emphasized that licensed banks in the UAE are expected not to expose the country’s financial system to reputational risks, to respect the laws and regulations of countries whose financial institutions are used to conduct transactions, and not to exploit the UAE’s advanced financial infrastructure.
The central bank clarified that it periodically inspects the anti-money laundering and counter-terrorism financing procedures of banks operating in the country, verifies the efficiency of electronic systems related to sanctions screening and other controls, and requires banks to improve these procedures and systems in accordance with applicable laws and regulations.
Regarding Bank Misr’s branches in the UAE, the central bank decided to carry out a “special and urgent inspection,” which will include a thorough review covering the period referenced in the statement issued by U.S. authorities, with a focus on the banking transactions of the companies mentioned in the statement.
The central bank said it is currently reviewing the available options regarding the bank’s status should the special measure be imposed against it after completing the procedures in accordance with U.S. laws. It affirmed that it will make the appropriate decision at the appropriate time, taking into account the bank’s obligations toward its clients in the UAE.
