US hits Egyptian bank branches with Iran sanctions as war marks six months
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The US Treasury said it views Egypt’s Banque Misr’s six UAE branches as a “critical node” for the Iranian government’s access to US dollars.
PHOTO: REUTERS
- The US imposed sanctions on Banque Misr's UAE branches to block dollar transactions linked to Iran, aiming to cut Tehran's economic lifelines amid ongoing conflict.
- Banque Misr's UAE branches processed about $1.8 billion for companies potentially tied to Iranian shadow banking from 2024 to 2026, identified as a "critical node" for Iran's dollar access.
- The sanctions also target Iran's Bank Melli UAE branch manager and a Hong Kong entity involved in money laundering, while Egypt's central bank confirms the measures affect only UAE branches.
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WASHINGTON – The US imposed Iran-related sanctions on an Egyptian bank on Aug 28, part of Treasury Secretary Scott Bessent’s campaign to increase economic pressure to try to break a stalemate six months into Washington’s war with Iran.
Treasury said it moved to cut off Banque Misr’s branches in the United Arab Emirates (UAE) from dollar transactions for its dealings with Iran.
In a statement, it said its Financial Crimes Enforcement Network (FinCEN) proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to US financial institutions.
The action, teased by Bessent on Aug 24 as a “major announcement” of a secondary sanction on an international bank, was first reported by the Financial Times.
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime,” Bessent said in a statement.
“We also warned that Iran’s enablers cannot continue to enjoy access to the US dollar and the global financial system. Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.”
Egypt’s central bank said on Aug 28 that the US action affected only Banque Misr’s UAE branches and did not extend to any other Egyptian banks.
The Central Bank of Egypt said in a statement that it and Egypt’s Ministry of Foreign Affairs were in contact with the US authorities about the measures.
A Treasury official also said the action applies only to Banque Misr’s UAE branches, allowing the bank to continue dollar transactions through its head office in Cairo and other foreign branches. These include Paris, Frankfurt, Riyadh, Beirut and Djibouti, according to Banque Misr’s website.
Treasury’s Office of Foreign Assets Control separately issued sanctions targeting the manager of Iran’s Bank Melli branch in the UAE, as well as a Hong Kong entity that it said helped launder money for a sanctioned Iranian exchange house.
Banque Misr UAE did not immediately respond to a Reuters request for comment on a public holiday. The sanctioned Bank Melli branch manager, Reza Mohammad Taeedi, also did not immediately respond to a Reuters e-mail requesting comment.
‘Critical node’ for dollars
The US Treasury said it views Banque Misr’s six UAE branches as a “critical node” for the Iranian government’s access to US dollars.
The department said it estimates that between January 2024 and June 2026, Banque Misr UAE processed approximately US$1.8 billion (S$2.3 billion) in transactions for 103 companies that are potentially part of Iranian shadow banking networks.
US State Department spokesman Tommy Pigott said in a statement that Bank Melli has served as a critical financial hub for Iran’s armed forces, including the Islamic Revolutionary Guard Corps-Qods Force and the Ministry of Defence and Armed Forces Logistics, both entities under US sanctions.
Iran has urged other nations not to join new US sanctions. REUTERS
