The central banks of the UAE and Egypt on Sunday affirmed “full cooperation and coordination” over the UAE branches of Banque Misr, following a US move to restrict the bank’s UAE operations from conducting dollar transactions through US financial institutions, Reuters reported.
In a joint statement, the two central banks said the UAE branches of Banque Misr would take “all necessary actions and measures” to ensure the bank continues to conduct its business as usual.
The United States moved to restrict the UAE operations of Egypt’s second-largest bank accusing it of facilitating financial activity linked to Iran.
The proposed US measure is expected to take effect within 30 days after a public comment period.
Why is the US targeting Banque Misr’s UAE operations?
The US Treasury has accused Banque Misr UAE of being a channel for Iran’s access to the US dollar and international financial system.
According to Al Jazeera, the Treasury estimates that between January 2024 and June 2026, Banque Misr UAE processed approximately $1.8 billion for 103 companies that could be part of Iranian shadow banking networks.
The Treasury also alleged that customers of the UAE operation included front companies used by Iran’s Ministry of Defence and the Islamic Revolutionary Guard Corps (IRGC) to evade US sanctions and move funds internationally.
US Treasury Secretary Scott Bessent said Washington was seeking to cut off Iran’s remaining economic links and warned entities facilitating Iranian financial activity that they could lose access to the US dollar and global financial system.
What does the proposed restriction mean?
The bank would lose its correspondent banking access to US financial institutions, meaning its UAE operations would no longer be able to conduct dollar transactions through US correspondent banks.
The restriction would not apply to Banque Misr’s operations in Egypt or its other overseas branches, according to the Central Bank of Egypt, according to Al Jazeera.
The proposal is not yet a final measure. The US government has provided a period for public comments before making a final decision.
What has Banque Misr said?
The bank said the proposed regulatory measures were still subject to an official period for receiving and reviewing comments before a final decision was made. It said it was examining the information and estimates contained in the notice “with the utmost seriousness and attention”.
The bank also said it would contact the US Treasury for further information.
Until then, its UAE branch would continue providing banking services to customers under applicable rules and procedures, according to Al Jazeera.
Egypt and UAE coordinate over the matter
The Central Bank of Egypt said it was coordinating with the country’s Ministry of Foreign Affairs and US authorities regarding the measures targeting Banque Misr’s UAE branches.
It stressed that the proposed action was limited to US dollar transactions between Banque Misr UAE and correspondent banks and would not affect other banks in Egypt, Banque Misr’s Egyptian operations or its other international branches.
The UAE central bank has also launched an investigation into Banque Misr’s operations in the country.
It said it would conduct a “special and urgent examination” of the bank’s UAE branches, including a forensic and detailed review covering the period referenced by US authorities.
The UAE regulator also said banks licensed in the country should not expose the UAE’s financial system to reputational risks or misuse its financial infrastructure.
Wider US pressure on Iran
The action against Banque Misr comes as Washington has stepped up its economic pressure on Iran.
According to Al Jazeera, the US Treasury last week imposed sanctions on nearly 60 individuals and entities accused of helping Iran generate oil revenue, procure weapons and conduct cyber operations.
The Treasury has referred to the broader pressure campaign as “Operation Economic Outcast”, aimed at isolating Iran financially.
The latest measures have targeted entities across the Middle East, Asia and Europe that Washington says are involved in Iran’s financial networks.
The US has also sanctioned Reza Mohammad Taeedi, general manager of the Dubai branch of Iran’s Bank Melli, under a counterterrorism authority. Separately, it sanctioned Hong Kong-based Kameng Trading Limited, which the Treasury accused of helping sanctioned Iranian entities access the international financial system.
About the Author
Prabhakar Jha
Prabhakar Jha is a journalist and digital news editor with nearly a decade of experience in online media, specialising in breaking news, politics, national affairs. Having built his career across fast-paced digital newsrooms, he has developed a reputation for delivering accurate, timely, and reader-friendly stories while leading editorial teams during high-pressure news cycles. In 2026, he joined LiveMint as a Digital Content Producer.
A postgraduate in History from the University of Delhi, Prabhakar combines strong editorial judgment with a keen interest in public policy, governance, economics, and global affairs. Before joining LiveMint, he worked with leading digital publications, including News9Live and The Times of India, where he handled breaking news, copy editing, headline writing, live coverage, and newsroom coordination.
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