The United States has moved to cut off the United Arab Emirates operations of Banque Misr from the American financial system after accusing Egypt’s second-largest state lender of facilitating transactions for Iranian networks, Al Jazeera reported. The Financial Crimes Enforcement Network, an agency of the US Department of the Treasury, issued a notice of proposed rulemaking to revoke correspondent banking access for the bank`s UAE branches. US Treasury Secretary Scott Bessent stated that the action forms part of a broader campaign named Operation Economic Outcast, designed to dismantle international financing channels accessible to Tehran.
US officials estimated that Banque Misr’s UAE branches processed roughly 1.8 billion dollars between January 2024 and June 2026 for 103 entities allegedly connected to Iranian shadow banking structures. The Treasury asserted that these intermediary accounts permitted front companies linked to Iran`s Ministry of Defence and the Islamic Revolutionary Guard Corps to evade existing international restrictions. The proposed regulatory measure specifically restricts dollar clearing services for the five branches located across the United Arab Emirates, while excluding the bank’s primary headquarters in Cairo and other global operations.
The proposed rule is scheduled to undergo a standard thirty-day public comment period before any final determination is executed by US regulators.
Banque Misr confirmed that it is reviewing the findings presented in the US Treasury notice with utmost seriousness and indicated that its UAE branches continue to serve clients under prevailing local regulations while clarification is sought. The Central Bank of Egypt affirmed that it remains in direct communication with US authorities alongside Egypt`s Ministry of Foreign Affairs, emphasizing that the measure is strictly isolated to UAE-based dollar correspondent accounts and carries no structural impact on the domestic Egyptian banking sector.
Simultaneously, the Central Bank of the UAE announced an urgent supervisory examination into Banque Misr`s local branches, initiating a comprehensive lookback across the operational timeframe highlighted in the US announcement. The Emirati regulator reiterated that all licensed institutions within the country are required to maintain strict adherence to international compliance frameworks to safeguard the jurisdiction`s financial infrastructure.
In tandem with the banking action, Washington imposed sanctions on the general manager of Bank Melli`s Dubai branch and designated a Hong Kong-based trading firm accused of assisting Iranian entities. Iranian officials dismissed the measures, maintaining that economic pressure campaigns would fail to alter the country`s posture amid deadlocked diplomatic negotiations.
