Key facts
- The U.S. Treasury Department sanctioned Banque Misr's branches in the United Arab Emirates for alleged dealings with Iran.
- Treasury Secretary Scott Bessent stated the move is part of efforts to increase economic pressure on Iran.
- The sanctions target Banque Misr's UAE operations, potentially cutting off their access to dollar transactions.
- Egypt's central bank confirmed the sanctions are limited to the UAE branches and is cooperating with U.S. officials.
- The UAE central bank has launched an urgent examination of Banque Misr's branches in the country.
The United States has imposed sanctions on the United Arab Emirates branches of Egypt's Banque Misr, accusing them of facilitating dollar transactions for Iran. Treasury Secretary Scott Bessent stated the move is part of a broader effort to increase economic pressure on Tehran amid a prolonged standoff.
The Treasury Department's Financial Crimes Enforcement Network (FinCEN) proposed a rule to sever the UAE branches' correspondent banking ties with U.S. financial institutions. Bessent warned that Iran's financial partners risk losing access to the global banking system.
Egypt's central bank clarified that the sanctions are confined to Banque Misr's UAE operations and do not affect other Egyptian banks. It is collaborating with the Foreign Ministry and U.S. officials on the matter. A Treasury official confirmed that Banque Misr can continue dollar transactions through its Cairo headquarters and other overseas offices.
Treasury described the six UAE branches as a critical conduit for Iran's government to access U.S. dollars, estimating they processed approximately $1.8 billion in transactions tied to 103 companies involved in Iran's shadow banking networks between January 2024 and June 2026.
In response, the UAE central bank announced it has initiated a special and urgent examination of Banque Misr's branches in the country, including a forensic lookback at the period cited by U.S. authorities. The central bank cautioned licensed banks against exposing the UAE's financial system to reputational risks and urged adherence to laws and regulations.