UAE and Egyptian central banks coordinate on Banque Misr amid US Treasury notice

Two central banks are now working in tandem after the US government took aim at one of Egypt’s oldest and largest state-owned lenders. The Central Bank of the UAE and the Central Bank of Egypt issued a coordinated statement confirming that Banque Misr’s UAE branches will continue normal operations while both regulators address a proposed enforcement action from Washington.

The trigger: on August 28, the US Treasury’s Financial Crimes Enforcement Network, better known as FinCEN, proposed rules that would sever Banque Misr’s UAE branches from US correspondent banking channels. The allegation is significant. FinCEN claims those branches processed roughly $1.8 billion in transactions involving 103 companies between January 2024 and June 2026, with the US government characterizing the activity as linked to Iranian financial networks.

What FinCEN is actually doing

FinCEN’s proposed action falls under Section 311 of the USA PATRIOT Act, a tool the agency uses to designate foreign financial institutions as primary money laundering concerns. If finalized, the rule would effectively cut off Banque Misr’s UAE operations from the US dollar clearing system. For a bank that operates five branches across Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah, losing access to dollar-denominated correspondent banking would be the financial equivalent of having your oxygen supply redirected.

US officials described Banque Misr’s UAE branches as “critical nodes” that enabled Iran to access US dollars. The proposed rule is part of what the US Treasury has labeled “Operation Economic Outcast,” a campaign designed to tighten the financial noose around Iranian entities amid escalating US-Iran tensions.

The rule is currently in a 30-day public comment period, which means nothing changes immediately.

The coordinated response

The joint statement from the CBUAE and CBE, issued on August 30, was carefully calibrated to project stability. Both regulators emphasized that Banque Misr’s branches in the UAE would maintain normal operations during the comment period. The CBE went further, confirming that no impact would occur on Banque Misr’s Egyptian operations or any branches outside the UAE.

UAE banks have also reportedly coordinated operational strategies to ensure continued service during the regulatory process.

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