CBUAE orders special inspection of Banque Misr UAE branches

Central Bank of the UAE building

The Central Bank of the United Arab Emirates (CBUAE) reviewed yesterday the statement issued by the US authorities regarding a proposed special measure concerning Banque Misr branches operating in the UAE, identifying them as a financial institution operating outside the United States of primary money laundering concern. The CBUAE would like to emphasize the following:

1- Banque Misr branches operating in the United Arab Emirates are subject to the laws and regulations in force in the UAE.

2- The CBUAE expects banks licensed in the UAE not to expose the UAE financial system to reputational risks, to respect the laws and regulations of countries whose financial institutions they use to conduct transactions, and not to misuse the UAE’s advanced financial infrastructure.

3- The CBUAE periodically inspects the anti-money laundering and counter-terrorism financing procedures of banks operating in the UAE, verifies the effectiveness of electronic systems related to sanctions screening and other controls, and requires banks to enhance these procedures and systems in accordance with applicable laws and regulations.

4- With regard to Banque Misr branches operating in the UAE, the CBUAE has decided to conduct a special and urgent inspection, including an in-depth review covering the period cited in the statement issued by the US authorities, with a focus on banking transactions involving the companies named in the statement.

5- The CBUAE is currently considering the available options regarding the bank’s status should a decision be made to impose a special measure against it following the completion of procedures under US law. The CBUAE will take the appropriate decision in due course, taking into account the bank’s obligations to its customers in the UAE.