UAE central bank to inspect Banque Misr branches after US sanctions

The UAE central bank announced it will conduct an inspection of Banque Misr’s branches in the United Arab Emirates following the US Treasury's decision to cut off the bank from the global financial system. This action is part of a broader initiative by the US government, referred to as "Operation Economic Outcast," aimed at economically isolating Iran. The US Treasury accused Banque Misr’s UAE branches of facilitating financial activities for the Iranian regime, which has led to the decision to revoke their ability to conduct business in US dollars starting September 28. The US Treasury's Financial Crimes Enforcement Network (FinCEN) proposed a rule to revoke the correspondent banking access of Banque Misr’s branches to US financial institutions. This move is intended to limit Iran's economic activities and financial support, reflecting ongoing efforts by the US government to apply pressure on Iran by targeting its financial enablers. The announcement includes a 30-day notification period during which the public can submit comments that may influence the final decision regarding the sanctions. Banque Misr is Egypt's second-largest bank, and the sanctions against its UAE branches highlight the complexities of international banking amid geopolitical tensions surrounding Iran's economic interactions. The Emirati central bank's examination will include a forensic lookback covering the period referenced in the US authorities' statement, indicating a thorough review of the bank's operations in light of the sanctions.