National Bank of Egypt receives preliminary approval to acquire Bank of Misr branches in the UAE
The National Bank of Egypt has received preliminary approval from the Central Bank of the United Arab Emirates to acquire Bank Misr’s branches in the UAE. This move comes weeks after the US Treasury Department proposed cutting these branches’ access to the US banking correspondent system due to transactions it said were linked to Iranian financial networks.
The two banks announced in a joint statement today that they had reached a preliminary agreement to restructure their banking presence in the UAE, in accordance with the legal and procedural requirements in force in the country.
The statement clarified that the initiative aims to achieve integration between the two banks’ external banking presence, ensure an organized and smooth transition of operations, and guarantee the continuity of services provided to customers while protecting their rights and interests.
Neither bank disclosed the potential value of the deal or the expected timeline for its completion. The statement confirmed that the transition process would be carried out in coordination with the relevant authorities and in compliance with the Central Bank of the UAE’s requirements.
The acquisition includes five Bank Misr branches in the UAE, according to data from the US Financial Crimes Enforcement Network (FinCEN), which estimated the total assets of these branches at approximately $6 billion.
The deal follows an announcement by FinCEN, an agency under the US Treasury Department, on August 28, 2026, proposing a regulatory rule aimed at preventing US financial institutions from opening or maintaining correspondent accounts for Bank Misr’s branches in the UAE.
The proposal would require US institutions to take reasonable steps to prevent transactions involving these branches from being indirectly routed through foreign bank accounts, alongside applying special due diligence measures to external correspondent accounts.
The measure does not constitute placing Bank Misr on the sanctions list of the Office of Foreign Assets Control (OFAC), as the rule remains in the proposal stage, with a comment period open until October 1, 2026, according to the Federal Register.
However, if finalized, the rule would deprive Bank Misr’s branches in the UAE of direct and indirect access to US correspondent accounts, restricting their ability to settle dollar-denominated transactions.
The US Treasury Department estimated that Bank Misr’s branches in the UAE processed transactions worth approximately $1.8 billion for 103 companies potentially linked to parallel Iranian banking networks, between January 2024 and June 2026.
The total included about $520 million during the 12 months covered by FinCEN’s review. The network stated that some of the companies involved were linked to sanctioned Iranian entities, including the Ministry of Defense and the Islamic Revolutionary Guard Corps.
The measure is part of the US Treasury’s “economic pariah” campaign launched in August to restrict Iran’s access to the US dollar and the global financial system, and to pursue companies and institutions accused of helping it circumvent sanctions.
FinCEN confirmed that the proposal applies only to Bank Misr’s five branches in the UAE and does not cover the bank’s operations within Egypt or its branches in other countries.
The Central Bank of Egypt and the Central Bank of the UAE had previously confirmed in a joint statement at the end of August that Bank Misr’s branches in the UAE would continue to conduct business normally, while taking necessary measures within the specified timeframe and coordinating between regulatory authorities.
