US Moves to Cut Banque Misr UAE From Dollar Network Over Alleged Iran Finance Links

The United States has moved to sever Banque Misr’s UAE branches from the US financial system, accusing the Egyptian state owned bank’s Dubai and other UAE operations of processing approximately $1.8 billion for companies potentially connected to Iranian shadow banking networks.

The proposed action, announced by the US Treasury on August 28 under its new Operation Economic Outcast, would revoke the UAE branches’ correspondent banking access to US financial institutions. The measure would effectively prevent the affected branches from accessing the US dollar clearing and correspondent banking infrastructure that underpins much of international finance.

According to the Treasury, the transactions occurred between January 2024 and June 2026 and involved 103 companies potentially linked to Iranian shadow banking networks. US authorities allege that some customers were front companies connected to Iran’s Ministry of Defence and Islamic Revolutionary Guard Corps, as well as networks used to move and launder funds.

The action does not currently target Banque Misr’s Cairo headquarters or its operations outside the UAE. It applies specifically to five UAE branches, making the case a significant example of how US authorities can use access to the dollar system as an enforcement lever against foreign financial institutions.

The UAE Central Bank has responded by ordering an urgent examination of Banque Misr’s local operations and transactions covering the period identified by US authorities. Banque Misr has said it is reviewing the US notice while maintaining that its UAE operations continue in accordance with applicable rules.

For compliance officers, the case carries a direct warning. Correspondent banking relationships remain a critical sanctions exposure point, particularly where institutions operate across multiple jurisdictions and service customers connected to high-risk markets.

The Banque Misr action also signals that sanctions enforcement is increasingly moving beyond named individuals and entities towards the financial infrastructure that enables prohibited transactions.