U.S. restricts Banque Misr UAE branch over alleged Iran links

The U.S. Treasury Department is moving to restrict the United Arab Emirates branch of Banque Misr from accessing the U.S. financial system. The measure is part of the Trump administration’s ‘Operation Economic Outcast,’ an initiative designed to disrupt financial networks linked to Iranian shadow banking.

U.S. officials allege the UAE-based unit processed approximately $1.8 billion in transactions between January 2024 and June 2026 for entities connected to Iran. Treasury Secretary Scott Bessent indicated that the move aims to ensure those supporting Iran cannot continue to utilize U.S. dollars or the global financial system. The restrictions are expected to take effect following a 30-day public comment period.

The Central Bank of Egypt (CBE) has issued a statement clarifying that these sanctions are highly specific to the UAE branch’s transactions with U.S. dollar correspondent banks. The CBE emphasized that the measures do not impact Banque Misr’s domestic operations in Egypt, its other overseas branches, or any other Egyptian financial institutions. The CBE and Egypt’s Ministry of Foreign Affairs are currently coordinating with U.S. officials to manage the situation.