US Sanctions EgyptBank in UAE Over Iran Transactions
The US imposed sanctions on EgyptBank branches in the UAE to cut off its dollar transactions with Iran, according to the Treasury Department.
Translated by Qiyas from الجريدة — Original source
The United States imposed sanctions related to Iran on Friday on branches of Bank Misr in the United Arab Emirates as part of a campaign announced by U.S. Treasury Secretary Scott Bessent to increase economic pressure on Iran in an effort to break the deadlock in the six-month-old war crisis. The Treasury Department said it took action to cut off dollar transactions by Bank Misr’s UAE branches due to their dealings with Iran. The department added in a statement that the Financial Crimes Enforcement Network proposed a rule that would deny Bank Misr’s UAE branches access to correspondent banking services at U.S. financial institutions.
The Financial Times was the first to report this measure, which Bessent had hinted at on Monday as a significant announcement of secondary sanctions against an international bank. Bessent said in a statement, “The Treasury has committed to cutting off every economic lifeline to Tehran to ultimately eliminate the threat posed by the Iranian regime.” He continued, “We have also warned those dealing with Iran that they cannot continue to access the U.S. dollar system and the global financial system. Bank Misr-UAE chose to discover the consequences the hard way, and today we take the first step to hold it accountable for its blatant continued support for the Iranian regime.” A U.S. Treasury official said the measure applies only to Bank Misr’s branches in the UAE, allowing the bank to continue dollar transfers through its headquarters in Cairo and branches in other countries. Bank Misr’s website indicates that its overseas branches are located in Paris, Frankfurt, Riyadh, Beirut, and Djibouti.
The Treasury’s Office of Foreign Assets Control imposed separate sanctions on the manager of Bank Melli Iran’s UAE branch and an entity in Hong Kong, citing assistance in money laundering for a sanctioned Iranian exchange house. Bank Misr-UAE did not respond to Reuters’ request for comment on a public holiday. Reuters was also unable to reach Reza Mohammad Tayyebi, manager of Bank Melli in the UAE, for comment.
The Central Bank of Egypt stated in a declaration that the measure “is limited to transactions of Bank Misr’s branch in the United Arab Emirates with correspondent banks in U.S. dollars only, and the impact of any of these measures does not extend to any of the banks in the Egyptian banking sector, including Bank Misr in the Arab Republic of Egypt or any of its other foreign branches.” The Central Bank of Egypt reaffirmed the strength and stability of all banks operating in the Arab Republic of Egypt.
The Treasury Department described the six Bank Misr branches in the UAE as a “critical node” in the Iranian government’s access to U.S. dollars. The department estimated that Bank Misr-UAE processed transactions worth approximately $1.8 billion between January 2024 and June 2026 on behalf of 103 companies that may be part of hidden Iranian banking networks.
