The Central Bank of Egypt (CBE) has announced that recent financial restrictions imposed by the U.S. on the United Arab Emirates branch of Banque Misr do not impact the bank’s domestic operations or any other financial institutions in Egypt.
U.S. restricts UAE bank branch over Iran links as Africa’s 2nd-largest economy says its banks are unaffected [Image Credit: Egypt Today]
- The U.S. has imposed financial restrictions on the UAE branch of Banque Misr as part of efforts to target Iranian financial networks.
- The U.S. Treasury accuses the UAE-based branch of processing about $1.8 billion for entities linked to Iranian shadow banking.
- These measures restrict the UAE branch’s access to U.S. financial services but do not affect banking operations within Egypt.
- Egyptian authorities are coordinating with the U.S. and have reassured stakeholders that Egypt’s banking system remains stable.
The restrictions, announced on Friday, are part of a broader effort by the United States government to disrupt financial networks associated with Iran.
Specifically, the U.S. Treasury Department accused the UAE-based unit of Banque Misr of processing approximately $1.8 billion in transactions between January 2024 and June 2026 for entities allegedly connected to “Iranian shadow banking networks”.
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These penalties have been instituted under the Trump administration’s Operation Economic Outcast initiative, which seeks to cut off Tehran’s access to international funds.
Consequently, the targeted UAE branch has had its access to U.S. financial services, including correspondent banking, restricted.
Egyptian banking authorities were quick to clarify that the scope of the American enforcement action is highly specific.
According to aformal statement by the Central Bank of Egypt the measures “are limited to transactions conducted by Banque Misr’s UAE branch with US dollar correspondent banks”
The central bank emphasized that these penalties “do not extend to Banque Misr in Egypt or any other Egyptian banks“.
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Additionally, other overseas branches of Banque Misr remain entirely clear of these newly announced limitations.
To manage the diplomatic and financial aspects of the situation, the CBE alongside Egypt’s Ministry of Foreign Affairs is currently in contact with U.S. officials regarding the UAE branch.
Reassuring depositors and international partners alike, the central bank “reaffirmed the strength and resilience of Egypt’s banking sector”.
Through these proactive clarifications, Egypt has made it clear that its core domestic banking infrastructure remains insulated from the overseas dispute.
