Pyramid Transnational: Banque Misr's Role in Hosting Front Companies

Looking back at the Persian Gulf Petrochemical Industries Commercial Company’s (PGPICC) documents, it appears that Banque Misr has a noticeable role and a dubious history of unknowingly facilitating sanctionable Iranian petrochemical export. WikIran calls on Egyptian-Emirati Banque Misr to hold up to top banking standards and act against the unbelievable number of 38 Iranian front companies it hosts and provides services to.

While it is long known that the UAE, China and Hong-Kong are fertile grounds for front companies due to their tax regulations, and most likely the political and economic benefits for the hosting countries, the case of Banque Misr is an abnormal phenomenon when it comes to Iran. Some banks from the UAE, China and Hong-Kong are more prone to experience Iranian illegal intervention than others. For example, Abu Dhabi Islamic Bank (ADIB), rarely comes up when going through the WikIran databases. On the other hand, Banque Misr hits the top of the list by far, especially when analyzing PGPICC’s documents. Here are some interesting facts worth mentioning regarding deals conducted using front company accounts hosted at Banque Misr:

• Large sums of money transferred at once: It appears that the actors involved in fraudulent sanction-busting business were not worried about transferring large sums of money at once and raising red flags at the bank's compliance division.

In one of the cases, a single transfer of 46.1 million AED (~12.5 million USD) was made from Universal Oceans 7 DMCC (a front company used by PGPICC’s customer) to Nefta Trading LLC (a PGPICC front company).)

• Banque Misr accounts often appear in formal letters of Iranian banks: various letters written by Bank Melli Iran, Iran Tourism Bank and Bank Mellat accounts were found.

• The Use of checks as a preferred method of payment: Perhaps coincidental, but might indicated to even lacking safeguards with this payment method.

The following table includes information about UAE-based front companies that hold accounts in Banque Misr:

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