Forbes reports that the US Treasury has proposed cutting off an Egyptian bank's UAE branch from the US financial system as part of expanding economic pressure on Iran. According to the report, the branch processed approximately $1.8 billion for companies linked to Iran's shadow banking network.
A Forbes report, now circulating via Iranian news channels, states that the US Treasury Department proposed disconnecting an Egyptian bank's UAE branch from the American financial system for allegedly processing some $1.8 billion for companies linked to Iran's shadow banking network. The report comes days after the Treasury officially imposed sanctions on the UAE subsidiary of Banque Misr, and after the central banks of Egypt and the UAE announced a coordinated response to the measures.
As The Zioneer reported on Friday (Aug 28), initial Israeli media reports indicated the disconnection of Banque Misr's UAE branches from US dollar transactions. The Treasury subsequently issued a sanctions notice accusing the branch of processing $1.8 billion between January 2024 and June 2026 for 103 Iran-linked companies. Egypt's central bank clarified the sanctions apply only to the UAE branch, while the UAE central bank stated the branch remains subject to local law and opened an investigation. By Sunday, the two central banks announced full cooperation to manage the sanctions' impact.
The Zioneer has previously covered the US Treasury's broader campaign against Iranian financial evasion, including the freezing of over $130 million in crypto assets linked to Iran's central bank, as well as reports of the UAE's involvement in releasing frozen Iranian funds.
It remains unclear whether the Forbes report refers to the same proposal that led to the imposed sanctions or to an earlier stage of deliberation. The report has not been independently confirmed by the Treasury or by Israeli official sources.
7 developments
- DevelopingUS Treasury sanctions Iran-linked entities for financial evasion
- DevelopingWSJ: UAE announces suspension of economic and financial transactions with Iran
- StrongUS Treasury Secretary announced freeze of over $130M in crypto assets tied to Iran's central bank
- DevelopingUS Treasury imposes new sanctions on Iran, targeting Mahan Air support networks
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