The U.S.
Treasury Secretary Scott Bessent announced the restrictions, stating that Banque Misr UAE had found out the hard way by continuing to support the Iranian regime. The U.S. action, described as a “first step” in holding the bank accountable, is part of the Trump administration’s strategy to pressure countries to sever ties with Iran before imposing broader sanctions. Bessent emphasized that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system,
according to a Treasury statement. The move does not directly sanction the Egyptian bank but cuts its UAE branches off from the U.S. financial system, as noted in a statement from the Central Bank of Egypt (CBE).
Egypt's Banque Misr reviews US Iran sanctions notice, UAE
The UAE Central Bank responded with a special and urgent examination
of Banque Misr’s branches, including a forensic/in-depth lookback
covering the period referenced in the U.S. authorities’ statement, according to Reuters. The regulator stressed that banks licensed in the UAE must respect the laws and regulations of the countries whose financial institutions are used in conducting transactions
and avoid misusing the advanced financial infrastructure of the UAE. The CBE also clarified that the U.S. measure applies only to Banque Misr’s UAE branches and does not affect other Egyptian banks or the institution’s operations within Egypt or its overseas branches.
The sanctions against Banque Misr UAE are part of the Treasury’s Operation Economic Outcast, a 2026 initiative that expanded secondary sanctions against entities aiding Iran’s economy. The program has previously targeted Egyptian individuals and firms, including businessman Hatem Elsaid Farid Ibrahim Sakr and Nefertiti Shipping, a company linked to Iranian logistics and trade networks, as reported by cryptobriefing.com. The Treasury’s broader sanctions framework now includes digital assets, gold, technology, aviation, and shipping, areas the U.S. government says Iran has used to evade restrictions.
US Treasury imposes limits on Egyptian bank for Iran
The U.S. action highlights tensions between Washington’s sanctions policy and the financial interests of Middle Eastern allies. While the Trump administration avoided direct sanctions on Banque Misr, it imposed restrictions on its UAE branches, citing concerns over reputational risks to the UAE’s financial system. The CBE affirmed that the measure is limited to the bank’s branches in the UAE and only to its dollar transfers,
emphasizing the strength of Egypt’s banking sector.
The Treasury’s rule, which will undergo a 30-day public comment period before taking effect, could set a precedent for future actions against institutions linked to Iran. The U.S. also announced new sanctions on the manager of Iran’s Bank Melli Dubai branch and a Hong Kong-based firm accused of laundering funds for Iran, as reported by the Associated Press. Treasury Secretary Bessent is set to represent the U.S. at Group of 20 finance ministers’ meetings, where he will advocate for global participation in isolating Iran’s economy.
US Targets Egyptian Bank's UAE Branches Under New Push
Egypt’s foreign ministry and central bank confirmed knowledge of the new rulemaking and are communicating with U.S. officials, according to a CBE statement. The regulator reiterated that the measure does not extend to Banque Misr’s operations in Egypt or its overseas branches. Banque Misr stated that its UAE branch continues to provide banking services in accordance with the applicable rules and procedures.
The case underscores Egypt’s strategic location, controlling the Suez Canal and sitting at the crossroads of African, Middle Eastern, and Mediterranean trade routes, a position that makes it a natural hub for commerce that sometimes intersects with sanctioned networks. The repeated appearance of Egyptian individuals and companies in Iran-related sanctions designations, including Hatem Elsaid Farid Ibrahim Sakr and Nefertiti Shipping, illustrates how commercial networks often intersect with sanctioned regimes. The U.S. has increasingly targeted such networks, expanding its sanctions framework to encompass sectors like digital assets and aviation.
The outcome of the UAE Central Bank’s review could shape how other financial institutions navigate the evolving landscape of Iran-related sanctions. Meanwhile, the CBE’s statement reaffirms its commitment to safeguarding Egypt’s financial system while engaging with U.S. authorities. The standoff reflects the complex interplay between U.S. geopolitical goals and the financial realities of regional players, as the UAE conducts its examination and the Treasury prepares for public input on its rule.
