The Central Bank of the UAE (CBUAE) and the Central Bank of Egypt issued a joint statement on Sunday affirming that Banque Misr UAE branches are conducting all their business as usual, following a US regulatory proposal that could sever the Egyptian lender’s UAE operations from the American financial system.
The two regulators confirmed ‘the full and continuous cooperation and coordination between them with regard to the branches of Banque Misr in the UAE.’ They added that the branches ‘will take all necessary actions and measures within the period specified for that purpose.’
What the US Treasury proposed
On 28 August, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to US financial institutions. The proposal designated the lender’s UAE operations as a channel through which Iran accesses foreign currency.
The notice was published in the Federal Register on 1 September 2026 under section 311 of the USA PATRIOT Act, which formally found the five UAE-based branches of Banque Misr to be of primary money laundering concern.
Under section 311’s fifth special measure, FinCEN can prohibit US financial institutions from opening or maintaining correspondent accounts for a designated foreign institution. The authority sits with the Secretary of the Treasury and has been delegated to FinCEN. The US Treasury said the measure does not affect any other Egyptian bank.
Banque Misr operates five branches in the UAE, spread across Dubai, Abu Dhabi, Sharjah and Ras Al Khaimah. Its regional office sits at Bay Gate Tower in Business Bay, Dubai, with further branches in Deira and in each of the other three emirates, according to Banque Misr’s branch listings.
How the UAE regulator responded
The CBUAE said on Saturday that it had ordered a special and urgent examination of Banque Misr’s UAE branches, including a forensic lookback covering the period referenced in the US statement, with a focus on transactions linked to the companies named by FinCEN.
The regulator said it expects banks licensed in the UAE not to expose the country’s financial system to reputational risks and to respect the laws of jurisdictions whose financial institutions are used in transactions. It added that it is evaluating regulatory options regarding Banque Misr’s status should the US measure be formally imposed, while ensuring the bank’s obligations to its customers in the UAE continue to be met.
The joint statement with Cairo follows an existing institutional relationship between the two central banks. The CBUAE and the Central Bank of Egypt previously signed a Bilateral Currency Swap Agreement allowing the exchange of local currencies up to AED 5 billion and EGP 42 billion, underscoring the depth of the regulatory ties the two bodies are now drawing on.
The CBUAE’s evaluation of regulatory options is ongoing; a decision on Banque Misr’s formal status will depend on whether FinCEN finalises its proposed rule after the comment period closes.
