CBUAE orders urgent forensic audit of Banque Misr UAE branches

The Central Bank of the UAE (CBUAE) on Sunday, 30 August, announced a special and urgent forensic examination of Banque Misr branches operating within the country. The move follows a proposal by United States authorities to designate the UAE-based branches of the Egyptian lender as a financial institution of primary money laundering concern. Forensic Review and Compliance Check The CBUAE mandate includes an in-depth lookback at transactions covering the period identified by U.S. regulators. The examination will specifically focus on the banking activities of companies named in the U.S. statement. The regulator emphasised that all branches of Banque Misr in the Emirates are subject to UAE laws and regulations and must maintain the integrity of the local financial system. The central bank stated that it expects all licensed financial institutions to avoid exposing the UAE to reputational risks. Banks are required to respect the legal frameworks of countries where they conduct transactions and are prohibited from misusing the UAE’s financial infrastructure. The CBUAE regularly verifies Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) procedures, including sanctions screening effectiveness. Future Regulatory Actions The decision to launch this probe was triggered by the U.S. government’s "Proposal of Special Measure" issued on Saturday, 29 August. This formal notification flagged the specific branches as a money laundering risk, prompting immediate…