US Treasury Moves to Cut Off Egyptian Bank in UAE
The US Treasury Department proposed a new rule on Friday. It targets Banque Misr's branches in the UAE.
The branches would lose access to the US financial system. Treasury Secretary Scott Bessent announced the move.
He said it aims to restrict Iran-related banking activity. Banque Misr is Egypt's second-largest bank.
Treasury said the bank's UAE operations processed about $1.8 billion. That covered January 2024 through June 2026.
The money involved 103 companies possibly linked to Iran's shadow banking network. Egypt's central bank said the rule only affects Banque Misr's UAE operations.
It also affects dollar transfers with correspondent banks. Egypt-based operations and other Egyptian banks are not affected.
The action is part of Bessent's Operation Economic Outcast. He announced that effort on August 24.
Treasury also sanctioned the manager of Bank Melli's Dubai branch. It also sanctioned a Hong Kong-based firm.
Key Terms 5
- UAE United Arab Emirates, a country in the Middle East.
- Banque Misr Egypt's second-largest bank.
- Shadow banking network Informal financial system used to move money around sanctions.
- Operation Economic Outcast US Treasury effort to stop Iran-related financial activity.
- Correspondent banks Banks that handle transactions for other banks abroad.