The central banks of Egypt and the United Arab Emirates announced on Sunday that they will coordinate to ensure business continues as usual at UAE branches of Egypt’s Banque Misr after the US Treasury Department proposed restricting US financial institutions from transacting with Banque Misr.
In a joint statement, the Central Bank of the UAE and the Central Bank of Egypt said their coordination aims to ensure Banque Misr takes all necessary actions related to the Treasury’s proposal.
Earlier on Sunday, the UAE’s Central Bank said it would launch an in-depth forensic investigation into the allegations outlined in the Treasury proposal.
Banque Misr UAE accused of facilitating IRGC money laundering
The US Treasury proposal, released on Friday, alleged that Banque Misr UAE had acted as a “critical node” in Tehran’s access to US currency, processing transactions for companies suspected of being part of Iranian shadow banking networks used to evade US sanctions.
According to the Treasury, some of those companies included alleged fronts for Iran’s Defense Ministry and the Islamic Revolutionary Guard Corps (IRGC).
Banque Misr UAE was accused of processing $1.8 billion in transactions for the companies between January 2024 and June 2026, which may have allowed the Iranian front companies to launder money.
To combat the Iranian shadow banking network, the proposed rule would prohibit US financial institutions from transacting with Banque Misr branches in the UAE.
Along with investigating the Treasury allegations, the UAE Central Bank said it was considering options for future action if the proposed rule is implemented.
Ariella Roitman contributed to this report.