Banque Misr UAE Sanctioned by US Treasury

The U.S. Treasury has sanctioned Banque Misr UAE, accusing the bank of facilitating $1.8bn in transactions for Iranian shadow banking networks, triggering an urgent UAE investigation and raising tensions in the region.

U.S. Sanctions Target Banque Misr UAE Over Iran Ties

The U.S. Department of the Treasury announced on August 28, 2026, that it would revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions, citing its role in enabling Iranian regime activities. The move, part of Operation Economic Outcast, alleges that the bank processed $1.8bn between January 2024 and June 2026 for 103 companies linked to Iran’s shadow banking networks, including entities tied to the Islamic Revolutionary Guard Corps and the Ministry of Defense. U.S. Secretary of the Treasury Scott Bessent stated the action aimed to sever every economic lifeline Tehran has left, warning that enablers cannot continue to enjoy access to the U.S. dollar and the global financial system.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed the rule, which would bar U.S. institutions from opening or maintaining correspondent accounts for Banque Misr UAE. This would block the bank’s ability to conduct dollar transactions, though it would not affect its operations in Egypt or other countries. The agency emphasized that Banque Misr UAE had become a “critical node” for Iran’s access to U.S. dollars, enabling revenue generation, weapons procurement, and regional influence.

Banque Misr Reviews U.S. Notice, UAE Launches Investigation

The Central Bank of Egypt (CBE) reiterated that the sanctions targeted only Banque Misr UAE’s USD transactions with correspondent banks, not its operations in Egypt or other branches. It confirmed ongoing coordination with U.S. authorities to address the measures.

A general view of the headquarters of the Banque Misr of Egypt, in the New Administrative Capital (NAC) east of Cairo — Photo: Reuters

U.S. Campaign Against Iranian Financial Networks Intensifies

The Treasury’s action comes amid stalled truce talks in the Israel-Iran conflict, with Washington seeking to pressure Tehran through financial measures. Officials framed the move as a response to Iran’s egregious support of the regime, with Bessent declaring, We are taking the first step in holding it accountable.

The U.S. also sanctioned Reza Mohammad Taeedi, manager of Iran’s Bank Melli branch in Dubai, and Hong Kong-based Kameng Trading Limited, accusing them of aiding Iran’s financial networks. The Treasury emphasized that U.S. financial institutions would face enhanced due diligence requirements for transactions involving Banque Misr UAE, with a 30-day public comment period before the rule takes effect.

Uncertainties and Regional Implications

The sanctions’ immediate impact on Banque Misr UAE remains unclear, as the bank has not yet commented on how it will navigate the restrictions. The UAE’s investigation could reveal further details about the bank’s compliance with international financial regulations. Analysts note that the move may complicate cross-border transactions involving Iranian-linked entities, but its broader effectiveness hinges on the cooperation of other financial hubs.

What’s behind the US move to hit Egyptian bank with Iran sanctions — Photo: Aljazeera

The situation underscores the escalating U.S. efforts to disrupt Iran’s financial lifelines, even as Tehran rejects the measures. For Banque Misr, the sanctions represent a significant reputational and operational risk, with potential ripple effects on its regional business. The coming weeks will test the resilience of the UAE’s financial system and the extent to which global banks will align with U.S. pressure campaigns.