The US Treasury Department has issued a sanction notice against the UAE subsidiary of Egypt's Banque Misr, accusing it of processing $1.8 billion between January 2024 and June 2026 for 103 companies linked to Iranian shadow banking networks. The UAE has launched an investigation that could lead to revocation of the branch's banking license. Egypt's Central Bank clarified that the sanction applies only to the branch's dollar transactions.
The US Treasury's official sanction notice against Banque Misr's UAE subsidiary, effective Sunday, confirms earlier reports that first emerged over the weekend. The subsidiary is accused of processing $1.8 billion between January 2024 and June 2026 for 103 companies tied to Iranian shadow banking networks, marking a significant escalation in the financial pressure campaign. The UAE has launched an investigation that could lead to revocation of the branch's banking license, according to the Treasury's designation.
The story broke Friday evening when Israeli media N12 reported that the UAE branches of Egypt's second-largest bank were being blocked from US dollar transactions. Within hours, the Treasury published its restriction notice, initially citing $2 billion in alleged laundering for Iran, then specifying the $1.8 billion figure and the 103 companies. Egypt's Central Bank clarified that the sanctions apply only to the UAE operations and do not affect Banque Misr's domestic business. The UAE Central Bank then stated that the branches are subject to local law and that US sanctions had not yet been applied to Emirati banks.
As The Zioneer has reported, the Treasury under Secretary Bessent has made dismantling Iranian financial evasion a central priority, with the UAE repeatedly a focal point. Reports earlier this month indicated the UAE had suspended economic transactions with Iran, and Dubai has historically served as a key transit hub for Iranian trade and finance.
The scope of the shadow banking network and the specific entities involved remain to be fully detailed. The UAE investigation and the potential revocation of Banque Misr's license will be closely watched as a measure of the effectiveness of the Treasury's campaign.
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
- StrongUS Treasury expands sanctions on Iranian aviation, adds 28 airlines and targets foreign facilitators
Source and signal
- Open-source intake