UAE Central Bank orders urgent Banque Misr review after US proposal

Abu Dhabi: The Central Bank of the UAE reviewed the issued statement of yesterday by the U.S. authorities regarding Proposal of Special Measure Regarding Banque Misr UAE branches, as a Financial Institution Operating Outside of the United States of Primary Money Laundering Concern. The Central Bank would like to emphasise the following:

1- Branches of Banque Misr operating in the UAE are subject to the laws and regulations in force in the UAE.

2- The Central Bank expects banks licensed in the UAE not to expose the UAE’s financial system to reputational risks, to respect the laws and regulations of the countries whose financial institutions are used in conducting transactions, and not to misuse the advanced financial infrastructure of the UAE.

3- The Central Bank periodically examines the procedures for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) at banks operating in the UAE, verifies the effectiveness of the sanctions screening and other systems, and requires banks to enhance these procedures and systems in accordance with the requirements of the applicable laws and regulations.

4- For Banque Misr branches in the UAE, the Central Bank has decided to conduct a special and urgent examination that includes a forensic/in-depth lookback covering the period referred to in the statement issued by the U.S. authorities, with a focus on banking transactions of the companies mentioned in the statement.

5- The Central Bank is currently studying the available options regarding the status of the bank in the event it is decided to impose the special measure against it after completing the procedures in accordance with U.S. laws. The appropriate decision in this regard will be taken in due course, taking into consideration the obligations of the bank towards its customers in the UAE.