Abu dhabi: The Central Bank of the UAE (CBUAE) and the Central Bank of Egypt (CBE) announced that Banque Misr's branches in the United Arab Emirates will continue their operations without disruption, as they coordinate their response to a proposed US regulatory measure targeting the bank's UAE operations.

According to State Information Service Egypt, the two central banks issued a joint statement affirming their 'full and continuous cooperation and coordination' concerning Banque Misr's UAE branches. They assured that the branches would implement all necessary actions and measures within the timeframe specified under the US regulatory process.

The announcement follows a proposal by the US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) to limit Banque Misr UAE's access to the US financial system. This proposal would restrict US financial institutions from maintaining correspondent accounts for Banque Misr UAE, specifically targeting its UAE operations while not affecting the bank's activities in Egypt or its branches in other countries.

The CBE had earlier clarified that the US action was confined to Banque Misr's UAE branches and their US dollar transactions with correspondent banks, ensuring no impact on other Egyptian banks or the bank's operations within Egypt.

The proposed measure is part of a larger initiative by Washington to enforce stricter financial measures against Iran. FinCEN identified Banque Misr UAE as a financial institution outside the US with significant money-laundering concerns, prompting the proposal.

The US regulatory process requires a formal period for receiving and reviewing comments before finalizing any rule. Banque Misr stated it is reviewing the proposal and expressed its commitment to cooperating with relevant authorities, taking necessary legal and regulatory actions.