Egyptian State Bank Acquires UAE Branches Amid US Money Laundering Concerns

The National Bank of Egypt (NBE) has been granted preliminary approval by the Central Bank of the United Arab Emirates to acquire Banque Misr's branches in the country. This move comes after the US Treasury identified Banque Misr's UAE operation as a 'primary money laundering concern' and proposed blocking its access to correspondent accounts at American financial institutions.

The transaction is seen as a transfer of ownership from one state-owned bank to another, rather than a sale to a private or foreign entity. The US action was taken due to alleged links between Banque Misr's UAE branches and Iran's shadow banking network.

The US Treasury's Financial Crimes Enforcement Network (FinCEN) proposed the action against Banque Misr UAE on August 28, stating that the branches had become a critical route through which the Iranian government obtained US dollars despite international financial restrictions. FinCEN identified 103 companies suspected of operating as fronts for Iran's shadow banking network, using Banque Misr UAE accounts to process approximately $1.8 billion in transactions between 2024 and June 2026.