US cuts off major Egyptian bank from global financial system

Sanctions on Banque Misr's branches in the UAE are part of Trump administration's 'Operation Economic Outcast' against Iran The high-rise commercial building, left, serves as the modern headquarters of Banque Misr, in Cairo, Egypt photographed on 9 February 2023 (Amir Makar/AFP) Published date: 28 August 2026 21:25 BST | Last update: 12 sec ago The US Treasury on Friday announced plans to cut off Banque Misr's branches in the United Arab Emirates from the global financial system, as the Trump administration seeks to "asphyxiate" what it said were Iran's "enablers". Banque Misr is Egypt's second-largest bank. Its Emirati arm will no longer be able to do business in US dollars as of 28 September, under the new plans. The 30-day notification period is open for public comment, a process whereby the US government solicits messages of support or opposition that could potentially sway the decision. "The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to US financial institutions. Treasury assesses that Banque Misr UAE is a critical node for the Iranian regime’s access to U.S. dollars," the Treasury said. "Operation Economic Outcast" was announced by Treasury Secretary Scott Bessent on Monday as part of Washington's efforts to squeeze Iran amid the standoff over the Strait of Hormuz. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters US banks, the Treasury said, must "take reasonable steps not to process a transaction for a correspondent account in the United States of a foreign banking institution if such a transaction involves Banque Misr UAE and to apply to their foreign correspondent accounts special due diligence". Friday's announcement also put Dubai's branch of Bank Melli in the crosshairs, as the US sanctioned its manager, Reza Mohammad Taeedi. China warns US of retaliation over expansion of Iran sanctions Read More » Bank Melli is a major commercial bank in Iran that served as its central bank before the 1979 revolution. It has branches across parts of Europe and the Middle East. "Bank Melli has served as a critical financial hub for Iran’s armed forces, including the Islamic Revolutionary Guard Corps-Qods Force and the Ministry of Defense and Armed Forces Logistics, both US-sanctioned entities," the Treasury said. A Hong Kong-based company, Kameng Trading Limited, was also sanctioned in the announcement. "Sanctioned Iranian exchange house Pedram Pirouzan Exchange House, also known as Opal Exchange, has used Kameng Trading Limited to launder money for Iran," the Treasury said. Asked on Monday about how these sanctions may impact Washington's relationship with China, given Beijing's close partnership with Tehran, Bessent replied: "We find that the best way to engage with countries is through quiet diplomacy, and we are level setting with every country to tell them our expectations." China is the top recipient of Iranian energy exports, and Chinese President Xi Jinping is expected to make a state visit to the White House next month. Middle East Eye delivers independent and unrivalled coverage and analysis of the Middle East, North Africa and beyond. To learn more about republishing this content and the associated fees, please fill out this form. More about MEE can be found here.