US targets Egyptian bank’s UAE branches under new push for Iran’s economic isolation

WASHINGTON — The Trump administration on Friday proposed cutting the United Arab Emirates branches of Egypt’s Banque Misr off from the U.S. financial system, accusing the bank of processing approximately $1.8 billion for Iranian shadow banking networks. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking identifying Banque Misr UAE as a “primary money laundering concern” under Section 311 of the USA PATRIOT Act. The action marks the first public move under “Operation Economic Outcast,” a campaign Treasury Secretary Scott Bessent announced on Aug. 24 to sever Iran’s remaining economic lifelines. The proposed rule, subject to a 30-day public comment period, would prohibit U.S. banks from opening or maintaining correspondent accounts for Banque Misr UAE. The Treasury also sanctioned Reza Mohammad Taeedi, manager of Bank Melli’s Dubai branch, and Hong Kong-based Kameng Trading Limited. The Central Bank of Egypt said the measures do not extend to Banque Misr in Egypt or other Egyptian banks.