The Central Bank of the UAE has ordered a forensic review of Banque Misr’s five branches in the country after the US Treasury’s Financial Crimes Enforcement Network proposed restricting their access to the American financial system.
The UAE regulator launched the examination on August 29, one day after FinCEN published a notice identifying Banque Misr’s UAE operations as a “financial institution of predominant money laundering concern.” The designation was made under the US PATRIOT Act, which gives American authorities powers to target foreign financial institutions suspected of facilitating illicit finance.
Alleged transactions linked to Iranian networks
According to FinCEN’s proposed rule, the five branches processed approximately $1.8 billion in transactions involving 103 companies allegedly connected to Iranian shadow banking networks. The notice covers activity between January 2024 and June 2026.
If the proposal is finalized, US financial institutions would be prohibited from opening or maintaining correspondent accounts for the five Banque Misr branches in the UAE. The measure is limited to those operations and does not apply to Banque Misr’s headquarters in Egypt or its branches in France, Germany and Saudi Arabia.
UAE regulator begins examination
The CBUAE moved to review the bank’s local activities within 24 hours of FinCEN’s announcement. Banque Misr said it remains committed to serving its customers while it assesses the US Treasury proposal.
Banque Misr is Egypt’s second-largest bank and is state-owned, meaning the allegations involving its UAE branches could raise questions about oversight of a major Egyptian financial institution.
Part of wider US campaign
The action against Banque Misr forms part of Treasury Secretary Scott Bessent’s “Operation Economic Outcast,” a campaign that has been active for roughly six months and targets banks and financial networks allegedly involved in financing the Iranian government.
The outcome of the CBUAE review could determine whether the matter leads to local enforcement action. Regional financial institutions are also likely to monitor whether FinCEN brings similar proposals against other Gulf-based banks, which would indicate that the US campaign is expanding beyond the Banque Misr case.
