UAE orders investigation on Banque Misr branches after US warning

The Central Bank of the UAE has issued an examination on Banque Misr branches in the country after US authorities reported a primary money laundering concern.

In a statement, the bank said it will conduct a special and urgent examination that includes a "forensic/in-depth lookback covering the period referred to in the statement issued by the US authorities, with a focus on banking transactions of the companies mentioned in the statement".

It clarified that the branches of Banque Misr operating in the UAE are subject to the country's laws and regulations.

The authority further emphasised that licensed banks in the UAE are expected not to expose the Emirate's financial system to "reputational risks", alongside respecting its regulations in conducting transactions, and not to "misuse the advanced financial infrastructure of the UAE". 

It also noted that periodic examinations of the procedures taken for "Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)" are conducted at banks operating in the UAE, including the effectiveness of its systems. 

The bank stated it is studying the "available options" on the bank's status in the case a special measure was decided after completing the procedures in accordance with US 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," the bank added.