- The Treasury Department has announced a rule to sever the Emirati branches of Banque Misr from access to the U.S. financial system.
- Treasury Secretary Bessent stated that the administration is taking the first step in holding Banque Misr accountable for its support of the Iranian regime.
- The rule will be subject to a 30-day public comment period before it takes effect, according to the Treasury Department.
- The Central Bank of Egypt confirmed knowledge of the new rulemaking and stated that it is communicating with U.S. officials.
- The Central Bank of Egypt (CBE) affirmed that the measure is limited to the bank’s branches in the UAE and only to its dollar transfers.
- Additionally, the U.S. Treasury Department posted new sanctions on the bank manager of the Dubai branch of Iran’s Bank Melli and a Hong Kong-based firm accused of laundering funds for Iran.
- The Central Bank of Egypt affirmed the strength and resilience of all banks operating in Egypt amidst these sanctions.
The U.S. Treasury Department is targeting the UAE branches of Banque Misr, Egypt's second-largest bank, for allegedly acting as a financial conduit for Iran. This action is part of a broader strategy to cut off Iran's economic ties amid escalating tensions.
The proposed sanctions, which will undergo a 30-day public comment period, aim to prohibit U.S. banks from facilitating transactions involving the UAE branches of Banque Misr. Treasury Secretary Scott Bessent stated, “Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system.”
The Treasury Department accused the bank of being a significant conduit for Iranian shadow banking, allowing Iranian entities to access U.S. dollars despite existing sanctions. It identified 103 potential front companies that transacted $1.8 billion through Banque Misr UAE accounts from January 2024 to June 2026.
The Central Bank of Egypt confirmed awareness of the new rule, clarifying that it only affects the bank's UAE branches and dollar transfers, not its operations in Egypt. The move follows the Emirati government's recent suspension of all trade with Iran, indicating a shift in regional financial dynamics.
Bessent's actions are part of a campaign dubbed Operation Economic Outcast, aimed at pressuring foreign entities to sever ties with Tehran. He plans to discuss these sanctions further during the upcoming G20 meeting in Asheville, North Carolina, emphasizing the need for consistency among G20 members in curtailing financial ties with Iran.
“The rule would sever the Emirati branches from the U.S. financial system, but the Central Bank of Egypt says it is limited to dollar transfers and does not affect other banks. Separately, Treasury sanctioned the Dubai branch manager of Iran's Bank Melli and a Hong Kong firm for laundering funds.”
