Abu dhabi: The Central Bank of the UAE has announced a thorough examination of the Banque Misr branches operating within the country, following a statement by U.S. authorities identifying these branches as a primary money laundering concern. This decision comes in response to a proposal by the U.S., aimed at imposing special measures on the bank's UAE branches.
According to Emirates News Agency, the Central Bank of the UAE emphasized that the branches of Banque Misr in the UAE are subject to the nation's laws and regulations. The Central Bank expects all licensed banks in the UAE to avoid exposing the country's financial system to reputational risks and to adhere to the laws of countries involved in their transactions. The statement further highlighted the importance of not misusing the UAE's advanced financial infrastructure.
The Central Bank regularly examines the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) procedures at banks operating within the UAE. It verifies the effectiveness of sanctions screening and related systems, urging banks to enhance these procedures in line with applicable laws and regulations.
For the Banque Misr branches, the Central Bank has decided to undertake an immediate and comprehensive examination, focusing on the banking transactions of companies mentioned in the U.S. authorities' statement. This examination will include a forensic lookback covering the specified period in the U.S. statement.
The Central Bank is also considering its options regarding the status of Banque Misr in the UAE, in case the U.S.-proposed special measures are imposed. Any decision will be made taking into account the bank's obligations towards its customers in the UAE, ensuring that due procedures are followed in line with U.S. laws.
