4 days ago
US Moves to Cut Banque Misr UAE Branches From Dollars
The United States says some UAE branches of Egypt’s Banque Misr helped companies connected to Iran move money.
The U.S. Treasury wants to make it harder for those branches to use American banks and U.S. dollars.
The branches reportedly handled about $1.8 billion for 103 possibly connected companies.
The proposed restriction is not in effect yet.
People will have 30 days to comment before the U.S. decides whether to finalize it.
The action applies only to Banque Misr’s UAE branches, not its headquarters in Egypt or its other overseas branches.
The United States also sanctioned a manager at Iran’s Bank Melli and a Hong Kong company.
Egypt said it was communicating with U.S. officials and stressed that the measure does not affect other Egyptian banks.
The U.S. Treasury proposed restricting Banque Misr’s six UAE branches from accessing U.S. correspondent banking services.
FinCEN said the proposed rule could block the branches from processing dollar transactions through American financial institutions.
Treasury estimated the UAE operation processed about $1.8 billion for 103 companies potentially linked to Iranian shadow-banking networks.
The proposal is not yet effective and will undergo a 30-day public-comment period before a final decision.
OFAC separately sanctioned Bank Melli manager Reza Mohammad Taeedi and Hong Kong-based Kameng Trading Limited over alleged Iranian financial activity.
- Who
- The U.S. Treasury and FinCEN, Banque Misr’s UAE branches, the Egyptian government, Iran, Reza Mohammad Taeedi, and Kameng Trading Limited.
- What
- The United States proposed cutting Banque Misr UAE off from U.S. correspondent banking and dollar access while separately imposing OFAC sanctions on two Iran-linked targets.
- Where
- The proposed restrictions concern Banque Misr branches in the United Arab Emirates, including Dubai; the separate designation involves a Hong Kong-based company.
- When
- Friday, August 28, after Treasury Secretary Scott Bessent announced a new Iran-focused campaign on August 24.
- Why
- Treasury alleged that Banque Misr UAE helped Iran and related companies access U.S. dollars and evade sanctions.
U.S. Treasury Position
Egyptian and Iranian Positions
Banque Misr UAE’s role
U.S. Treasury Position
Treasury said the UAE branches were a critical channel for Iran’s access to U.S. dollars and had processed funds for companies potentially involved in Iranian shadow banking.
Egyptian and Iranian Positions
Egypt’s central bank emphasized that the action is limited to the UAE branches and does not affect other Egyptian banks or Banque Misr’s operations in Egypt and elsewhere.
Financial pressure on Iran
U.S. Treasury Position
The U.S. administration said financial institutions helping Iran evade sanctions should risk losing access to the dollar and the global financial system.
Egyptian and Iranian Positions
Iran has urged other countries not to join new U.S. sanctions.
Immediate effect of the action
U.S. Treasury Position
Treasury presented the measure as the first step toward holding Banque Misr UAE accountable and restricting its access to U.S. financial institutions.
Egyptian and Iranian Positions
The proposal is not yet final; it must go through a 30-day public-comment period before FinCEN decides whether to impose the restrictions.
Key facts
- Banque Misr branches affected
- Six branches in the United Arab Emirates
- Proposed U.S. measure
- FinCEN would bar U.S. financial institutions from maintaining correspondent accounts for Banque Misr UAE and require measures to prevent related transactions.
- Estimated transactions
- Approximately $1.8 billion processed between January 2024 and June 2026
- Companies involved
- 103 companies potentially linked to Iranian shadow-banking networks
- Status
- The proposal is subject to a 30-day public-comment period and is not yet in effect.
- Other U.S. sanctions
- OFAC sanctioned Reza Mohammad Taeedi, general manager of Bank Melli’s Dubai branch, and Kameng Trading Limited.
- Scope clarified by Egypt
- Egypt’s central bank said the measure applies only to Banque Misr’s UAE branches and dollar transfers, not other Egyptian banks or Banque Misr operations elsewhere.
Quotes
Central Bank of Egypt
Egypt’s central banking authority
“The CBE affirms that this measure is limited to the bank’s branches in the UAE and only to its dollar transfers.”
livemint.com
“The Central Bank of Egypt affirms the strength and resilience of all banks operating in Egypt.”
livemint.com
Scott Bessent
US Treasury secretary who announced the proposed financial restrictions
“Treasury promised to sever every economic lifeline Tehran has left and finally end the threat of the Iranian regime. We also warned that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system. Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.”
livemint.com
theprint.in
Sources
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