Trump administration targets UAE branches of Egyptian bank in new push to isolate Iran | Today’s news
The Trump administration is taking steps to limit the Bank of Egypt’s operations in the United Arab Emirates, accusing the financial institution of serving as an economic lifeline to Tehran’s leadership like the US. the war against Iran has reached the six-month mark.
US targets Egyptian bank deepening Iran’s economic isolation
Under the new rule proposed on Friday by the Treasury Department, the Emirati branches of Banque Misr, Egypt’s second largest bank, would be cut off from access to the US financial system.
The move follows Treasury Secretary Scott Bessent’s announcement this week of a new campaign to get countries still doing business with the already heavily sanctioned Islamic Republic to cut their financial ties or face retaliation from the United States.
The move follows Treasury Secretary Scott Bessent’s announcement this week of a new campaign to get countries still doing business with the already heavily sanctioned Islamic Republic to cut their financial ties or face retaliation from the United States.
By stopping sanctions on the Egyptian bank, the move signals the Republican administration’s reluctance to penalize major trading partners that do business with Iran, including China and India. Bessent told reporters on Monday that he wanted countries to have the opportunity to disengage from Iran before it was too late in an effort to avoid upsetting the global financial system.
The rule will be subject to a 30-day public comment period before taking effect, the Treasury Department said.
The Trump administration “warned that Iranian officials cannot continue to enjoy access to the US dollar and the global financial system,” Bessent said in a statement Friday. “Banque Misr UAE has decided to find a tougher path and today we are taking the first step to hold it accountable for its continued, blatant support of the Iranian regime.”
Egypt’s foreign ministry and central bank confirmed their knowledge of the new rulemaking and said they were in communication with US officials, according to a statement issued by Egypt’s central bank on Friday.
“The CBE confirms that this measure is limited to the bank’s branches in the UAE and only to its dollar transfers,” it said in a statement.
It added that the measure does not affect any other Egyptian bank and does not apply to Banque Misr’s operations in Egypt or any of its overseas branches.
“The Central Bank of Egypt confirms the strength and resilience of all banks operating in Egypt,” it said in a statement.
Also on Friday, the U.S. Treasury Department posted on its Office of Foreign Assets Control website new sanctions against the manager of the Dubai branch of Iran’s Bank Melli and a Hong Kong-based company the U.S. accuses of helping to launder money for Iran.
Bessent is expected to represent the US at the Group of 20 finance ministers’ meetings next week, where he will meet individually with counterparts from major and developing economies to encourage their participation in Iran’s economic isolation.
