U.S. targets Bank Misr subsidiary with sanctions over Iran ties

The United States Department of the Treasury is preparing to block the United Arab Emirates subsidiary of Bank Misr, Egypt’s second-largest financial institution, from accessing the U.S. financial system. This move follows recent declarations of an “economic war” against Iran by the Trump administration.

The Financial Crimes Enforcement Network (FinCEN) has proposed a rule to revoke the UAE subsidiary’s access to correspondent banking relationships with U.S. financial institutions. Treasury officials allege the bank has acted as a “fundamental financial axis” for the Iranian regime, processing approximately $1.8 billion for 103 companies between January 2024 and June 2026 that may be part of Iranian shadow banking networks. The U.S. claims these transactions involved shell companies used by the Iranian Ministry of Defense and the Revolutionary Guard to evade sanctions and launder money.

Treasury Secretary Scott Bessent stated that the measure is a step toward holding entities accountable for supporting the Iranian regime, asserting that those who facilitate Iranian interests cannot maintain access to the U.S. dollar or the global financial system. This action occurs amid heightened tensions and economic pressure on Iran, which has faced significant difficulties following ongoing conflicts and maritime blockades in the Strait of Hormuz.