Banque Misr, Egypt’s second-largest, hit by US sanctions: What to know

What the report says

The United States has moved to restrict Banque Misr’s UAE operations from the US financial system, accusing the Egyptian bank’s UAE branch of handling business tied to the Iranian government. In Al Jazeera’s reporting, the Treasury Department said the step is aimed at cutting off what it views as a key channel for Iranian access to US dollars and the wider financial network. The measure was announced on Friday and, according to the article, is expected to take effect after a public comment period of about 30 days.

Al Jazeera reported that the proposed action would affect only Banque Misr UAE’s correspondent banking access for dollar transactions, not the bank’s branches in Egypt or elsewhere. The Treasury said the branch processed about $1.8bn between January 2024 and June 2026 for companies it believes may be linked to Iranian shadow banking activity. Banque Misr said on Saturday that it was reviewing the notice and would seek more information. Egypt’s central bank and foreign ministry have also been in contact with US authorities, while the UAE central bank said it had opened a special examination of the bank’s operations in the country.

The US action came alongside other sanctions on individuals and firms in Iran, the UAE, and Hong Kong. Al Jazeera framed the move within a broader US campaign to intensify economic pressure on Tehran amid stalled truce talks. More generally, sanctions on banks and trading networks can complicate cross-border payments and raise compliance risks for institutions connected to jurisdictions under US scrutiny.