US Takes Step to Revoke Correspondent Banking Access for Banque Misr's UAE Branch
The US Treasury Department's FinCEN has proposed a rule to terminate the US correspondent banking access of Banque Misr's UAE branch due to its role in Iran's financial network.
The US Treasury Department announced that the Financial Crimes Enforcement Network has proposed a rule to revoke the correspondent banking access of Banque Misr's United Arab Emirates branch to US financial institutions, as part of an economic exclusion operation targeting Iran's financial network.
Proposed Rule Targeting Banque Misr's UAE Branch
The US Treasury Department reported that the Financial Crimes Enforcement Network (FinCEN) has proposed a rule to revoke the correspondent banking access to US financial institutions for Banque Misr's United Arab Emirates (UAE) branch.
Critical Point for Iran's Dollar Access
In its statement, the US Treasury Department noted that Banque Misr's UAE branch is assessed to be a critical point for Iran's access to US dollars.
It is estimated that between January 2024 and June 2026, the Egyptian bank processed approximately $1.8 billion in transactions on behalf of 103 companies that are part of Iran's shadow banking networks.
Front Companies Used to Evade Sanctions
It was claimed that due to being subject to comprehensive US sanctions, Iran resorts to shadow banking networks in order to generate revenue abroad.
It was alleged that the bank's customers included front companies used by the Iranian Ministry of Defense and the Islamic Revolutionary Guard Corps to evade sanctions.
Money Laundering Risk and Scope
A rule was proposed by FinCEN stating that Banque Misr operating in the UAE is a financial institution of primary money laundering concern.
It was emphasized that the rule proposal applies solely to Banque Misr's UAE branch and does not cover its operations in other countries.
Individuals Added to New Sanctions List
It was reported that Reza Mohammad Taeedi, who serves as a manager at Bank Melli's Dubai branch, and the Hong Kong-based company Kameng Trading Limited have also been added to the sanctions list.
US Treasury Secretary Scott Bessent stated that they are committed to cutting off Tehran's economic lifelines and ending the threat posed by Iran.