US Sanctions Target Banque Misr's UAE Branch Over Iranian Ties

The US Treasury Department has imposed sanctions on Banque Misr's UAE branch as part of Operation Economic Outcast, citing its support for the Iranian regime. The decision revokes correspondent banking access to US financial institutions, affecting only certain transactions of the UAE branch and not extending to Banque Misr's operations in Egypt or other international branches.

According to an Egyptian banking source, the impact is limited to US dollar transfers outside the UAE, which will now require prior approval from Washington. This measure aims to prevent funds from reaching individuals or institutions subject to US sanctions or ban orders.

Economic expert Abdel Nabi Abdel Muttalib downplayed the significance of the decision, stating that it targets the correspondent service provided by US companies or banks to Banque Misr and not the bank itself. He also noted that many transfers are executed in various currencies but delivered in US dollars, as it is widely used internationally.

Banque Misr has confirmed that its UAE branch continues to provide banking services to customers, stating that the measure applies strictly to the US dollar and does not extend to its operations in Egypt or other countries. The bank also emphasized that the decision is subject to review and may be canceled following coordination with the US.