U.S. Moves To Cut Banque Misr UAE Branches Off From Dollar System
The U.S. Treasury proposed a rule on Friday, August 28, 2026, to cut Banque Misr's UAE branches off the U.S. dollar system.[1]
Treasury framed the rule as a first step against what it called the bank's "egregious support" for Iran and opened a 30-day comment period.[1] Egypt's central bank said the move is limited to the UAE branches' U.S. dollar transfers and does not affect Banque Misr's Egyptian or other overseas operations.[1] Treasury also announced sanctions the same day on the manager of Iran's Bank Melli Dubai branch and on a Hong Kong firm alleged to have laundered Iranian funds.[1]
On August 24, 2026, Treasury Secretary Scott Bessent unveiled "Operation Economic Outcast," a campaign to sever Iran's remaining economic lifelines. The U.S.-Iran war began in late February 2026 after joint U.S.-Israeli strikes that killed Ayatollah Ali Khamenei, and Washington has since been escalating measures to choke Tehran's access to foreign currency. Banque Misr's UAE arm operates five branches and held about $6 billion in assets as of December 31, 2025. Between January 2024 and June 2026 it processed roughly $1.8 billion for 103 companies assessed as potentially tied to Iranian shadow-banking networks.
Some former Treasury officials say countries such as the UAE, Iraq and Turkey already have incentives to distance themselves from Tehran to preserve dollar access, which could amplify the rule's impact. The move could force Gulf banks to choose between preserving dollar access and continuing business that risks U.S. penalties.
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📊 Relevant Data
Banque Misr UAE operates five branches and held approximately $6 billion in assets as of December 31, 2025.
Banque Misr United Arab Emirates Branches, Financial Statements for Year Ended 31 December 2025 — Banque Misr
Between January 2024 and June 2026, Banque Misr UAE processed approximately $1.8 billion for 103 companies assessed as potentially part of Iranian shadow banking networks.
Iran’s Access to UAE Banks Targeted Under Operation Economic Outcast — U.S. Department of the Treasury
📌 Key Facts
- On Friday, August 28, 2026, Treasury proposed a rule cutting Banque Misr’s UAE branches off from the U.S. financial system.
- The rule is framed as a first step against what Treasury calls the bank’s “egregious support” for Iran and will have a 30-day comment period.
- Egypt’s central bank said the action is limited to the UAE branches’ U.S. dollar transfers and does not affect Banque Misr’s Egyptian or other overseas operations.
- Treasury the same day sanctioned the manager of Iran’s Bank Melli Dubai branch and a Hong Kong-based firm alleged to launder Iranian funds.
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