Regulators order comprehensive lookback into transactions linked to sanctioned entities as Abu Dhabi reviews options against the Egyptian lender.
ABU DHABI — Aug. 30, 2026:The Central Bank of the United Arab Emirates has ordered an urgent forensic audit into the UAE operations of Banque Misr after US authorities designated the state-owned Egyptian bank’s local branches as a primary money laundering concern.
Financial regulators in Abu Dhabi confirmed the targeted investigation will focus on historical transactions involving specific entities named by the United States Department of the Treasury. The move follows a proposal by US officials to enact special measures against the foreign branches of the Cairo-headquartered lender over illicit finance risks.
The Central Bank stated that all branches of Banque Misr operating within the UAE remain strictly subject to domestic laws and regulations. However, banking authorities warned that institutions licensed within the country must not expose the national financial system to reputational risk or misuse the federation’s financial infrastructure.
Under the regulatory mandate, inspectors will execute an in-depth, backwards-looking examination covering the precise timeframe identified by US authorities. The targeted review will focus heavily on sanctions screening systems, anti-money laundering frameworks, and transaction flows tied to companies highlighted in the American enforcement notice.
Central Bank officials said they are evaluating all available administrative and regulatory options regarding the status of Banque Misr within the country should Washington finalize the proposed special measures. Regulators emphasized that any ultimate enforcement decision will take into account the bank’s existing liabilities and obligations toward retail and commercial depositors in the UAE.
Regular supervisory protocols require all UAE-based financial institutions to maintain strict Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) safeguards. The central bank periodically conducts compliance reviews to ensure local banks respect international sanctions and maintain effective cross-border transaction controls.
