WASHINGTON (AP) — The U.S. Treasury Department is proposing measures to limit the operations of Banque Misr, Egypt's second-largest bank, in the United Arab Emirates. The proposal, announced on Friday, accuses the bank of facilitating financial support to Iran as the U.S. continues its campaign against the Iranian government, which has been ongoing for six months. If enacted, the new rule would cut the Emirati branches of Banque Misr off from the U.S. financial system.
This follows Treasury Secretary Scott Bessent's recent announcement of a campaign aimed at encouraging countries that maintain financial ties with Iran to sever those connections or face potential repercussions from the United States. Bessent indicated that the administration is not yet imposing sanctions on the Egyptian bank, reflecting a cautious approach towards major trading partners like China and India that also engage with Iran. He emphasized the need for countries to transition away from Iran to avoid destabilizing the global financial system.
The proposed rule will undergo a 30-day public comment period before implementation. Bessent stated, "Iran's enablers cannot continue to enjoy access to the U.S. dollar and the global financial system," and noted that Banque Misr's actions have led to this accountability measure.
The Central Bank of Egypt and the Egyptian foreign ministry acknowledged the new rule and confirmed ongoing communication with U.S. officials. They clarified that the measure specifically targets the bank's UAE branches and their dollar transactions, with no impact on other Egyptian banks or Banque Misr's operations within Egypt.
Additionally, the U.S. Treasury Department announced new sanctions on the manager of the Dubai branch of Iran's Bank Melli and a Hong Kong-based firm accused of laundering funds for Iran. Bessent is scheduled to attend the upcoming Group of 20 finance ministers meetings to discuss further economic isolation of Iran with global counterparts.