US Treasury cuts Banque Misr UAE branches from dollar system
This digest was compiled by AI from multiple sources — links to the originals are below.
The US Treasury Department moved to cut Banque Misr's UAE branches from the global financial system, revoking their dollar transaction authority and US correspondent banking access. The action, announced under Operation Economic Outcast, targets what Washington describes as a critical conduit for Iran's access to US dollars. Restrictions are expected to take effect in late September after a 30-day public notice period.
Key Facts
- Banque Misr is Egypt's second-largest bank and operates branches in the UAE.
- The US Treasury revoked the bank's UAE branches' ability to transact in US dollars and their access to US correspondent banking.
- The action was announced under Operation Economic Outcast and is expected to take effect in late September after a 30-day notice period.
- The US Treasury also targeted Bank Melli's Dubai branch and blacklisted its manager, Reza Mohammad Taeedi.
- The move comes ahead of Chinese President Xi Jinping's visit to the White House.
The US Treasury Action
The US Treasury Department moved to cut Banque Misr's UAE branches from the global financial system, revoking their dollar transaction authority and US correspondent banking access. The action was announced under Operation Economic Outcast, a strategy to increase financial pressure on Iran. Washington says the bank was used as a critical conduit for the Tehran regime's access to US dollars. Restrictions are expected to take effect in late September after a 30-day public notice period. The Treasury instructed American financial institutions to halt transactions involving Banque Misr's UAE branches and to maximize scrutiny of foreign correspondent accounts.
Broader Sanctions Wave
Simultaneously, the US targeted Bank Melli's Dubai branch, one of Iran's leading commercial banks. Branch manager Reza Mohammad Taeedi was added to the blacklist. The measures aim to sever Tehran's financial networks in the Middle East amid rising tensions in the Strait of Hormuz. The move comes ahead of Chinese President Xi Jinping's visit to the White House, adding a diplomatic dimension. US Treasury Secretary Scott Bessent said they are in contact with all relevant countries and believe quiet diplomacy is the most effective path.
2 sources
US Treasury cuts Banque Misr UAE branches from dollar system
