Egypt and UAE central banks coordinate response after US restricts Banque Misr's UAE branches
The central banks of Egypt and the United Arab Emirates are working together to mitigate the impact of a U.S. Treasury action that cut off Banque Misr's six UAE branches from the U.S. financial system over alleged links to Iran.
The central banks of Egypt and the United Arab Emirates said on Sunday they are cooperating to address a U.S. Treasury decision that barred Banque Misr's six branches in the UAE from the U.S. dollar system. The United States targeted the UAE operations, alleging they facilitated about $1.8 billion in transactions linked to Iranian shadow-banking networks between January 2024 and June 2026. Egypt's central bank clarified that the restrictions do not affect the bank's headquarters in Cairo or its other international activities.
"Banque Misr will take the necessary steps to ensure its operations continue without disruption," the joint statement said.
The U.S. Treasury also prohibited American financial institutions from processing transactions involving the UAE branches and has pursued other entities it says help Iran evade sanctions, including a manager of Iran's Bank Melli in Dubai and a Hong Kong-based firm accused of money-laundering for a sanctioned Iranian exchange.
The UAE central bank announced an urgent examination of the bank's UAE branches covering the period cited by the Treasury, while Banque Misr said it is reviewing the notice and assessing its implications. The bank is Egypt's second-largest state-owned lender, making the action notable for the country's financial sector.