Treasury moves to sanction UAE branch of Egyptian bank over Iran ties

The Trump administration is targeting Egyptian bank Banque Misr's UAE branches as part of a broader effort to isolate the Iranian regime economically. The administration argues that Banque Misr serves as a lifeline for Tehran's leadership as the U.S. conflict with Iran enters its six-month phase. A new Treasury Department rule, proposed on Friday, would sever the UAE branches' access to the U.S. financial system.

This move follows Treasury Secretary Scott Bessent's announcement of a campaign to push other countries to sever ties with Iran or face U.S. retaliation. While the rule does not impose sanctions on Banque Misr, it is a step in holding the bank accountable for its support of the Iranian regime. The move comes after a previous sanction on the manager of Iran's Bank Melli's Dubai branch and a Hong Kong-based firm accused of laundering funds for Iran.

The rule will undergo a 30-day public comment period before taking effect. The Central Bank of Egypt confirmed their knowledge of the new rulemaking and stated that it only affects the bank's UAE branches and dollar transfers, not any other Egyptian bank or Banque Misr's operations inside Egypt.