After the U.S. sanctioned Banque Misr’s UAE branch in an Iran-related action,
the Central Bank of the UAE said it expects banks licensed in the UAE to “not
expose the UAE financial system to reputational risk” or “abuse the UAE’s
advanced financial infrastructure.” The central bank said it will carry out an
emergency inspection of the local branch, reiterated that the branch is subject
to UAE laws and regulations, and is “studying possible special measures” against
the bank. The U.S. Treasury said the sanctions are part of intensified U.S.
economic action targeting Iran and its international financial partners and will
cut off the branch’s access to dollar transactions.
