Banque Misr UAE Branches Targeted By US Over Alleged Iran Links: What We Know

The United States has moved against Banque Misr’s five UAE branches over allegations that the Egyptian bank helped Iranian networks maintain access to dollars despite Washington’s sanctions on Tehran. The proposed rule is limited to the bank’s UAE operations and does not cover its branches in Egypt or elsewhere.

The US Treasury’s Financial Crimes Enforcement Network, or FinCEN, has proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to US financial institutions. The move is part of Treasury Secretary Scott Bessent’s campaign to increase economic pressure on Iran. The action comes as Washington steps up pressure on Tehran amid deadlocked truce talks.

Why is Banque Misr being targeted?

The US case centres on Banque Misr’s six UAE branches and their alleged role in transactions connected to Iranian financial networks. US authorities regard the branches as a “critical node” for Iran’s access to US dollars.

The US Treasury estimates that Banque Misr UAE processed about $1.8 billion in transactions between January 2024 and June 2026 for 103 companies that could be part of Iranian shadow-banking networks.

Washington alleges that some customers were front companies used by Iran’s Ministry of Defence and the Islamic Revolutionary Guard Corps to evade US sanctions. It also alleges that some customers were involved in moving money on behalf of Iran’s Supreme Leader, Mojtaba Khamenei.

These are allegations made by US authorities, not findings established by a court. Banque Misr UAE did not immediately respond to requests for comment.

What exactly has the US done?

The proposal does not amount to a blanket sanction on Banque Misr. FinCEN has proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to US financial institutions. The proposal is subject to a public-comment period before it can take effect.

In practical terms, the measure would restrict the UAE branches’ access to the US financial system for dollar transactions. The proposed rule applies only to Banque Misr UAE’s correspondent banking access and would not affect the bank’s branches in Egypt or elsewhere.

Banque Misr can continue dollar transactions through its Cairo head office and other overseas branches, including those in Paris, Frankfurt, Riyadh, Beirut and Djibouti.

The Central Bank of Egypt said the measure was limited to Banque Misr’s UAE branches and dollar transfers. It does not affect any other Egyptian bank or Banque Misr’s operations inside Egypt or its other overseas branches.

The action does not mean Banque Misr’s UAE branches have stopped all operations. Reuters reported that the bank was reviewing the notice, while its UAE branch continued providing banking services under applicable rules. The US action, however, concerns dollar transactions through the UAE branches. Al Jazeera said Banque Misr would contact the US Treasury for further information.

Why does the UAE role matter now?

The key issue is what Washington alleges happened through Banque Misr’s UAE branches. The proposed measure does not cover every Banque Misr operation. It is focusing on the UAE branches because it says those branches processed transactions linked to Iranian shadow-banking networks.

The $1.8 billion figure is central to that argument. Reuters reported that the Treasury believes the five UAE branches processed that amount for 103 companies potentially connected to Iranian shadow banking between January 2024 and June 2026. Washington therefore sees the branches as a route through which Iran could retain access to dollars and international financial networks.

The timing is also significant. Al Jazeera reported that the Banque Misr action came under Operation Economic Outcast, a US campaign announced as Washington increased economic pressure on Iran amid deadlocked truce talks. The Treasury had already imposed new sanctions on nearly 60 individuals and entities, targeting networks Washington accused of helping Iran generate oil revenue, procure weapons and conduct cyber operations.

Al Jazeera said the campaign reflects a renewed US focus on economic pressure after months of war. It cited analyst Negar Mortazavi, who said Washington was returning to economic pressure because military force had not delivered the quick victory it expected.

AP reported that Bessent was preparing to use meetings with finance ministers from major and developing economies to encourage participation in Iran’s economic isolation. The administration is seeking to pressure countries and financial institutions that continue doing business with Tehran to cut those ties or risk retaliation.

The Banque Misr proposal fits that strategy because it targets a financial channel outside Iran without applying the same restriction to the wider Egyptian banking system. The move signals that foreign banks could face US action if Washington believes their operations are helping Iranian networks access the dollar system.

The UAE has also responded. Al Jazeera reported that the UAE central bank launched a special and urgent examination of Banque Misr’s branches, including a forensic review covering the period referred to by US authorities.

For Egypt, the immediate impact is limited to the UAE branches and their dollar transactions and access to US correspondent banking. The proposed rule has not yet completed the public-comment process.

The next step is the US rulemaking process. Until a final decision is made, the allegations against Banque Misr UAE remain claims by US authorities. The proposed rule would restrict the UAE branches’ access to US correspondent banking over alleged Iran-related financial activity, while Banque Misr’s operations in Egypt and its other overseas branches remain outside the measure.