US Iran Sanctions on Banque Misr Trigger UAE Central Bank Probe

Egypt's Banque Misr has said it is reviewing a notice from the US Treasury that would cut off its branches in the United Arab Emirates from dollar transactions, citing their dealings with Iran. The development comes as part of a broader campaign by US Treasury Secretary Scott Bessent to intensify economic pressure amid an ongoing conflict with Iran.

In a statement, Banque Misr said its UAE branch continues to provide banking services to customers in line with applicable rules and procedures. The bank's response follows the US action, which targets its operations in the Gulf state.

Later on Saturday, the UAE's central bank announced it had decided to conduct a "special and urgent examination" of Banque Misr's branches in the country. The regulator said this would include a forensic lookback covering the period referenced in the US statement.

The UAE central bank also issued a broader warning, stating that banks licensed in the country are expected not to expose the UAE's financial system to reputational risks. It added that institutions must respect the laws of countries whose financial systems are used for transactions and must not misuse the UAE's advanced financial infrastructure.