US limits Banque Misr UAE over Iran

The Trump administration, through the United States — United States Department of the Treasury, proposed a rule on Friday to sever the United Arab Emirates branches of Banque Misr, Egypt's second-largest bank, from access to the U.S. financial system. The move accuses the bank of serving as an economic lifeline to Iran's leadership, six months into the U.S. war with Iran. The proposed rule, subject to a 30-day public comment period, would revoke Banque Misr UAE's correspondent banking access to U.S. financial institutions. Treasury Secretary Scott Bessent stated that Iran's enablers cannot continue to enjoy access to the U.S. dollar and the global financial system, and that Banque Misr UAE 'decided to find out the hard way.' The action stops short of full sanctions, reflecting reluctance to penalize major trading partners like China and India. Separately, the Treasury's United States — Office of Foreign Assets Control issued sanctions on the bank manager of the Dubai branch of Bank Melli Iran and a China — Hong Kong-based firm accused of laundering funds for Iran. The Egypt — Central Bank of Egypt confirmed the measure is limited to Banque Misr's UAE branches and dollar transfers, not affecting other Egyptian banks or domestic operations. Bessent is set to attend G20 finance ministers meetings to encourage broader economic isolation of Iran.