The Central Bank of the UAE has reviewed a statement issued yesterday by US authorities proposing the imposition of a “special measure” against Banque Misr branches in the UAE. The statement identified the branches as a financial institution operating outside the US and a “primary money laundering concern”.

The Central Bank of the UAE emphasised the following:

1. Banque Misr branches operating in the UAE are subject to the country’s applicable laws and regulations.

2. The Central Bank expects UAE-licensed banks not to expose the country’s financial system to credit or reputational risks, to comply with the laws and regulations of countries whose financial institutions are used to process transactions, and not to misuse the UAE’s advanced financial infrastructure.

3. The Central Bank periodically reviews anti-money laundering and counter-terrorist financing practices at banks operating in the UAE. It also assesses the effectiveness of sanctions-screening and other systems and requires banks to strengthen these practices and systems in line with applicable laws and regulations.

4. Regarding Banque Misr’s branches in the UAE, the Central Bank has decided to conduct an urgent special review. This will include an in-depth expert assessment of the period referenced in the US authorities’ statement, with particular focus on the banking transactions of the companies named in it.

5. The Central Bank is 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 legal procedures under US law.

An appropriate decision will be taken in due course, while also considering the bank’s obligations to its customers in the UAE.