Business & Finance

US proposes rule to cut UAE branch of Egyptian bank from financial system over Iran ties

The Treasury Department targets Banque Misr UAE under a broader effort to pressure international institutions to end business with Tehran.

Updated Aug 28, 2026 · 16:21 UTC4 reports

The short version

The U.S. Treasury Department proposed a rule to sever the United Arab Emirates branches of Egypt's Banque Misr from the U.S. financial system.
U.S. officials accused the financial institution of assisting Iran's economy and facilitating transactions for companies connected to Tehran's shadow banking network.
The U.S. also sanctioned an Iranian bank manager in Dubai and a Hong Kong firm over alleged money laundering for Iran.
The proposed rule will undergo a 30-day public comment period before taking effect.

The Treasury Department proposed a rule to disconnect the UAE branches of Banque Misr, Egypt's second-largest bank, from access to U.S. financial institutions.[CNBC · ABC News · Associated Press]
Treasury officials stated that Banque Misr UAE processed roughly $1.8 billion over two years for approximately 100 firms potentially linked to Iran's shadow banking network.[CNBC]
The enforcement initiative, named 'Operation Economic Outcast' by Treasury Secretary Scott Bessent, aims to force third-party countries and institutions to sever trade and financial ties with Iran.[CNBC · Associated Press]
Treasury separately blacklisted Reza Mohammad Taeedi, the general manager of Iran's Bank Melli Dubai branch, and sanctioned Hong Kong-based Kameng Trading Limited for alleged money laundering.[CNBC · ABC News · Associated Press]
The United Arab Emirates suspended trade relations with Iran ahead of the action.[Associated Press]

It remains to be seen whether major trading partners of Iran, such as China, will comply with U.S. pressure or resist secondary sanctions.[Associated Press · Associated Press]