US Sanctions Banque Misr UAE Branches Over $1.8 Billion in Iran Deals

The US has long sought to limit Iran's access to the global financial system, especially targeting networks believed to fund its government and alleged illicit activities. In late August 2026, this campaign expanded to include Egypt's Banque Misr, one of the largest state-owned banks in the region.

According to the Financial Times and Bloomberg, US authorities focused on Banque Misr's UAE branches. They accused the bank of processing transactions linked to Iran, citing concerns that these activities supported Tehran amid ongoing Middle East conflicts.

On August 28, 2026, the US Treasury announced new sanctions against Banque Misr's UAE branches. Bloomberg reported that the sanctions aimed to disconnect these branches from the US financial system, specifically cutting off access to dollar transactions. Time.news and the New York Post highlighted that the move followed accusations of $1.8 billion in shadow banking transactions tied to Iran.

Coverage from Al Jazeera and Middle East Eye emphasized that these steps were part of a broader US strategy to economically isolate Iran. The US also targeted entities in Hong Kong and other regional banks suspected of facilitating Iranian access to hard currency.

In response, Egypt's central bank and Banque Misr said they would review the US Treasury's notice and consider legal options. The bank stated publicly that it would continue normal operations. Meanwhile, the UAE central bank began its own urgent review and inspection of Banque Misr's local branches, as reported by Middle East Eye and BBC Persian.

By August 30, the central banks of Egypt and the UAE issued a joint statement, reported by Mint, assuring depositors and customers that Banque Misr would maintain normal services despite the US restrictions. Coordination between the two regulators was described as ongoing.

Banque Misr's UAE branches remain under scrutiny. The US sanctions have formally cut their access to the US financial system, particularly dollar transactions, according to Al Jazeera and other outlets. Both the Egyptian and UAE central banks are working together to support the bank's operations and reassure clients.

Banque Misr insists it will continue business as usual. The bank is reviewing legal avenues to challenge the US measures while regulators in the UAE carry out their inspection.

Key questions remain about the outcome of the UAE central bank's review and whether further restrictions or penalties will follow. Market watchers are also monitoring any broader impact on regional banking and remittances, especially for Egyptian expatriates in the Gulf.