The Central Bank of the UAE launched an investigation into the local branches of Egypt’s Banque Misr after the US Treasury said it would bar the lender’s UAE operations from dollar transactions over its dealings with Iran.
The probe follows the US announcement last week of a fresh sanctions campaign against Iran. The Treasury Department said Banque Misr’s UAE branches had processed about $1.8 billion in transactions “that are potentially part of Iranian shadow banking networks.”
The proposed action highlights the UAE’s place as a center for trade with Iran. Yet even after the US warned of an “economic D-Day,” branches of Iranian banks in the UAE have continued to operate, and many of Iran’s biggest trading partners have shrugged off the threat.