The United States has moved to cut Banque Misr’s six branches in the United Arab Emirates off from the US financial system, accusing the Egyptian bank’s UAE operations of processing about $1.8 billion in transactions linked to Iranian shadow-banking networks.
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) said the transactions involved 103 companies that were potentially part of networks used by Iran to move money around international sanctions between January 2024 and June 2026.
The proposed measure would prohibit US financial institutions from opening or maintaining correspondent accounts for Banque Misr UAE and from processing transactions involving the bank through foreign correspondent accounts.
The Treasury described Banque Misr UAE as a “critical node” in the Iranian government’s access to US dollars.
The action is part of the Trump administration’s broader campaign to squeeze Iran’s access to the international financial system as Washington’s conflict with Tehran enters its sixth month.
US says transactions were linked to Iranian networks
FinCEN said its investigation identified at least $1.8 billion in potential Iranian shadow-banking activity conducted through Banque Misr UAE since 2024.
The agency said the bank’s customers included companies potentially connected to Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps, as well as entities involved in moving funds through international networks designed to evade US sanctions.
Treasury Secretary Scott Bessent said the administration had warned financial institutions and governments that those helping Iran maintain access to dollars would face consequences.
The proposed rule was issued under Section 311 of the USA PATRIOT Act. It is subject to a 30-day public comment period before the restrictions can become final.
The measure applies specifically to Banque Misr’s UAE operations and does not sever the Egyptian bank’s entire global network from the US financial system.
Banque Misr reviews US notice
Banque Misr said on Saturday that it was reviewing the Treasury notice.
The Egyptian bank said its UAE branch continued to provide banking services to customers “in accordance with the applicable rules and procedures”, indicating that normal operations had not immediately stopped following the US announcement.
The bank did not publicly acknowledge the US allegations in detail or announce any immediate suspension of its UAE operations.
The response came as authorities in the UAE moved to examine the bank’s local activities.
UAE central bank launches investigation
The Central Bank of the UAE said it had launched an urgent examination of Banque Misr’s UAE branches following the US action.
The review includes a forensic examination of the branches’ financial activities during the period identified in the US Treasury notice, according to Reuters.
The UAE central bank said financial institutions operating in the country are expected to comply with international legal and regulatory standards and avoid conduct that could expose the country’s financial system to reputational risks.
The investigation puts additional pressure on Banque Misr’s UAE operations as the bank seeks to assess the US allegations and their potential consequences.
Pressure on Iran’s financial lifelines
The action against Banque Misr comes as Washington expands efforts to restrict the financial channels Iran uses to conduct international trade and move money despite US sanctions.
Iran has increasingly relied on networks of companies and financial intermediaries outside the country to move funds, conduct trade and access currencies that are otherwise difficult to obtain under US sanctions.
The UAE, a major regional financial and trading hub, has become an important focus of US enforcement efforts because of its extensive commercial links with Iran.
For Banque Misr, the immediate question is whether the proposed US restrictions will ultimately be adopted and how they would affect its ability to conduct dollar transactions through the international banking system.
For the UAE, the central bank’s investigation will determine whether the allegations point to compliance failures at Banque Misr’s local operations and whether further regulatory action is required.
