Banque Misr, the second largest banking entity in Egypt, has announced that it will provide all possible collaboration to the U.S. Department of the Treasury, after this agency communicated on Friday a threat of sanctions against its branch in the United Arab Emirates for its operations with Iran.
As part of one of the most significant decisions within the recent strengthening of Washington's sanctions against Iran, the Financial Crimes Enforcement Network (FinCEN) of the Treasury has proposed a new regulation aimed at removing the Emirati subsidiary's access to "banking correspondent relationships with U.S. financial institutions."
According to the Treasury, this branch acts as "a fundamental financial hub for the Iranian regime," given that between January 2024 and June 2026 it "processed approximately $1.8 billion (€1.55 billion) for 103 companies that could be part of Iranian shadow banking networks."
In a statement released this Saturday, Misr emphasizes "its full respect for the relevant regulatory and legal frameworks" and specifies that the announcement from the United States is currently a proposal that does not yet constitute "a definitive rule."
In this context, the Egyptian entity has contacted the Treasury Department "to obtain additional information and maintain ongoing cooperation, in order to take the necessary legal and regulatory measures and present its response to the competent authorities within the established timeframe."
The bank also emphasizes that the initiative "is limited to the Banque Misr branch in the United Arab Emirates and does not affect its operations in the Arab Republic of Egypt or in any other country where it has a presence."
Finally, the note concludes that "Banque Misr reaffirms the strength of its financial position and the full commitment of its branch in the United Arab Emirates to comply with all its obligations to clients and other related parties."