‘Banque Misr will continue as usual’: UAE and Egypt central banks issue joint statement after US action | Today’s news
The central banks of the United Arab Emirates and Egypt on Sunday confirmed “full cooperation and coordination” over Banque Misr’s branches in the United Arab Emirates, following a US move to restrict the bank’s operations in the United Arab Emirates from conducting dollar transactions through US financial institutions, Reuters reported.
In a joint statement, the two central banks said Banque Misr’s UAE branches will take “all necessary measures and measures” to ensure the bank continues business as usual.
The United States has moved to restrict the operations of Egypt’s second largest bank in the United Arab Emirates, accusing it of facilitating financial activities linked to Iran.
The proposed US measure is expected to take effect within 30 days of the public comment period.
Why is the US targeting Banque Misr’s operations in the UAE?
The US Treasury has accused Banque Misr UAE of being a conduit for Iran’s access to the US dollar and the international financial system.
According to Al Jazeera, the Ministry of Finance estimates that between January 2024 and June 2026 Banque Misr UAE processed approximately $1.8 billion for 103 companies that may be part of Iran’s shadow banking networks.
The Treasury Department also alleged that customers of the UAE operation included front companies used by Iran’s Ministry of Defense and the Islamic Revolutionary Guard Corps (IRGC) to circumvent US sanctions and move funds internationally.
US Treasury Secretary Scott Bessent said Washington was seeking to sever Iran’s remaining economic ties and warned entities facilitating Iran’s financial activities could lose access to the US dollar and the global financial system.
Read also | US targets UAE branches of Egyptian bank over alleged Iranian ties
What does the proposed restriction mean?
The bank would lose its correspondent banking access to US financial institutions, meaning its UAE operations would no longer be able to conduct dollar transactions through US correspondent banks.
The restrictions would not apply to Banque Misr’s operations in Egypt or its other overseas branches, Egypt’s central bank said, Al Jazeera reported.
The proposal is not yet a final measure. The US government has provided a period for public comment before making a final decision.
What did Banque Misr say?
The bank said the proposed regulatory measures are still subject to an official period for receiving and reviewing comments before a final decision is made. It said it was reviewing the information and estimates contained in the announcement “with the utmost seriousness and attention”.
The bank also said it would contact the US Treasury for more information.
Until then, its UAE branch will continue to provide banking services to customers in accordance with applicable rules and procedures, Al Jazeera reports.
Read also | Iran says getting US diplomacy back on track is not impossible
Egypt and the United Arab Emirates are coordinating the whole matter
Egypt’s central bank said it was coordinating with the country’s Ministry of Foreign Affairs and US authorities on measures targeting Banque Misr branches in the UAE.
She emphasized that the proposed measure is limited to US dollar transactions between Banque Misr UAE and correspondent banks and will not affect other banks in Egypt, Banque Misr’s Egyptian operations or its other international branches.
The UAE Central Bank has also launched an investigation into Banque Misr’s operations in the country.
It said it would conduct a “special and urgent examination” of the bank’s UAE branches, including a forensic and detailed review covering the period cited by US authorities.
The UAE regulator also said banks licensed in the country should not expose the UAE financial system to reputational risks or abuse its financial infrastructure.
Wider US pressure on Iran
The action against Banque Misr comes as Washington has stepped up its economic pressure on Iran.
According to Al Jazeera, the US Treasury last week imposed sanctions on nearly 60 individuals and entities accused of helping Iran generate oil revenue, procure weapons and conduct cyber operations.
The Treasury Department has called the broader pressure campaign “Operation Economic Outcast” to isolate Iran financially.
The latest measures have targeted entities in the Middle East, Asia and Europe that Washington says are involved in Iran’s financial networks.
The US also imposed sanctions on Reza Mohammad Taeedi, the managing director of the Dubai branch of Iran’s Bank Melli under the Counter-Terrorism Authority. Separately, it imposed sanctions on Hong Kong-based Kameng Trading Limited, which the Treasury Department accused of helping sanctioned Iranian entities access the international financial system.
