United States targets Banque Misr UAE branch over Iran sanctions

The United States is intensifying economic pressure on Iran by targeting financial institutions suspected of facilitating transactions for the Iranian government. U.S. Treasury Secretary Scott Bessent has signaled a broader campaign to restrict Tehran’s access to the international financial system by utilizing the banking sector as a primary lever of pressure.

Specifically, the Financial Crimes Enforcement Network (FinCEN) has proposed measures against the United Arab Emirates branch of Banque Misr. The U.S. Treasury alleges that between January 2024 and June 2026, the UAE branch processed approximately $1.8 billion for 103 companies potentially linked to Iranian shadow banking networks. These networks are accused of being used by the Iranian Ministry of Defense and the Islamic Revolutionary Guard Corps to bypass sanctions.

The proposed action would involve removing Banque Misr UAE’s access to correspondent banking relationships with U.S. financial institutions, effectively limiting its ability to conduct transactions in U.S. dollars. Banque Misr has stated it is reviewing the notice and intends to communicate with U.S. authorities. The decision is expected to take effect 30 days after the public consultation period concludes.