FinCEN Proposes Ban on US Correspondent Accounts for Banque Misr UAE Branches

FinCEN issued a notice of proposed rulemaking under Section 311 of the USA PATRIOT Act, designating five UAE-based branches of Banque Misr as primary money laundering concerns and proposing to prohibit U.S. financial institutions from maintaining correspondent accounts for them. The measure also requires U.S. banks to take reasonable steps to avoid processing transactions for these branches through other foreign banks' correspondent accounts. This marks a significant escalation in U.S. financial pressure on Egyptian state-owned banking operations in the UAE, potentially disrupting dollar-clearing flows and signaling heightened scrutiny of regional money-laundering risks.