UAE probes Banque Misr after U.S. moves to cut dollar access

The UAE is investigating Banque Misr after U.S. authorities moved to cut the Egyptian bank’s local branches off from the American financial system because of concerns about links to Iran.

The Central Bank said it will conduct a “special and urgent” forensic review of transactions involving companies flagged by U.S. officials, The National reports.

The proposed U.S. penalty would block Banque Misr UAE from using American banks to clear dollar transactions, severely restricting its ability to conduct international business.

Banque Misr’s five UAE branches continue to operate normally while the UAE and Egyptian central banks coordinate their response to the proposed U.S. measure, Al-Ahram reports. Banque Misr issued a statement saying that it “affirms its full respect” for the process and the laws and will fully cooperate with the probe.

The UAE regulator said it’s weighing its own action against Banque Misr while seeking to protect the bank’s customers.