The UAE Central Bank announced Saturday an inspection of Egyptian state-owned Banque Misr's UAE branches, targeted a day earlier by US sanctions over alleged involvement in financial transactions with Iran.
Egypt's central bank responded swiftly, saying it was "in contact with the Americans regarding these measures © Mena Today
The UAE Central Bank announced Saturday an inspection of Egyptian state-owned Banque Misr's UAE branches, targeted a day earlier by US sanctions over alleged involvement in financial transactions with Iran.
"The Central Bank has decided to conduct a special and urgent review, which will include a thorough assessment covering the period referenced in the [US Treasury] announcement," it said in a statement carried by state news agency WAM.
On Friday, Washington announced the exclusion of Banque Misr's UAE branch from the US financial system, accusing it of facilitating financial exchanges with Iran. The UAE had already suspended all commercial and financial exchanges with Iran, following President Donald Trump's August 20 announcement of an unprecedented "economic war" against Tehran.
This marks the first concrete action taken by the US government since Treasury Secretary Scott Bessent announced earlier in the week his intention to cut Iran off from "all economic resources" to drive it toward "total isolation." In practice, the move should prevent the UAE subsidiary of Misr — Egypt's second-largest bank — from using the dollar in its daily transactions.
Washington had already tightened sanctions on Iran, extending them to gold, technology, digital assets, aviation and shipping.
"We have warned that those who facilitate things for Iran cannot continue to enjoy access to the dollar and the global financial system. Banque Misr UAE chose to find that out the hard way," Bessent said in a statement.
Egypt's central bank responded swiftly, saying it was "in contact with the Americans regarding these measures," which it stressed were "strictly limited to Banque Misr's UAE subsidiary and only concern dollar transactions," and did not target any bank within Egypt's banking system, including Banque Misr in Egypt itself.
In a statement Saturday, Banque Misr said it "fully complies with applicable regulatory and legal frameworks" and is "cooperating fully and constructively with the relevant authorities," adding that its UAE branch continues to "provide banking services to its clients in accordance with applicable rules and procedures."
Iranian leaders are acknowledging the economic toll of war with the U.S., with the supreme leader urging the government to address the hardship and the president saying foreign trade has shrunk by a third due to the American sanctions and blockade.
The U.S. imposed Iran-related sanctions on an Egyptian bank on Friday, part of Treasury Secretary Scott Bessent's campaign to increase economic pressure to try to break a stalemate six months into Washington's war with Iran.
Major General Staff Saleh Mohammed bin Mejren Al Ameri, Commander of the UAE's National Guard, visited Jordan's Gendarmerie and Civil Defence forces as part of his official visit to the Hashemite Kingdom.
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