UAE to probe Egyptian bank over alleged Iran sanctions breach

The United Arab Emirates' central bank has announced it will conduct a special and urgent examination of Banque Misr's UAE branches. This action follows accusations by the U.S. Treasury Department that the Egyptian bank's branches have been instrumental in helping Iran access U.S. dollars, potentially violating sanctions.

The U.S. Treasury estimated that between January 2024 and June 2026, Banque Misr's UAE operations processed approximately $1.8 billion for 103 companies suspected of being part of Iran's shadow banking networks. The UAE central bank stated its investigation will include a forensic lookback covering the period cited by U.S. authorities, with a specific focus on the transactions of the mentioned companies.

Banque Misr has issued a statement affirming its commitment to fully respecting the process and cooperating with the probe. The bank also indicated it would continue to provide services to its customers in the UAE. The UAE central bank emphasized its expectation that licensed banks avoid reputational risks and is considering options regarding Banque Misr's status if U.S. measures are enacted, while also considering customer obligations.