UAE to review Egyptian bank amid US sanctions on Iran

By the Editorial Team · Tuesday, September 1, 2026

The UAE central bank announced an urgent examination of Banque Misr’s branches within its jurisdiction following U.S. allegations that the bank facilitated significant transactions linked to Iran’s sanctioned networks. This investigation signals increased regulatory scrutiny aimed at enforcing sanctions and restricting Iran’s access to international financial systems.

The central bank of the United Arab Emirates (UAE) announced on Saturday that it will carry out a “special and urgent examination” of an Egyptian bank operating within its jurisdiction, following increased scrutiny linked to U.S. sanctions targeting Iran. The move comes shortly after the U.S. Treasury Department proposed measures aimed at curbing the bank’s ability to conduct transactions with American financial institutions.

The institution in question, Banque Misr, which is state-owned by Egypt, operates branches in the UAE that the Treasury Department has identified as playing a key role in facilitating financial flows connected to Iran. According to the U.S. Treasury, these branches function as a “critical node” allowing the Iranian government to access U.S. dollar transactions despite existing sanctions.

The Treasury Department’s assessment includes an estimate that Banque Misr’s branches in the UAE processed approximately $1.8 billion in payments between January 2024 and June 2026. These transactions are believed to be linked to what the Treasury describes as Iranian “shadow banking networks,” which are mechanisms used by Tehran to circumvent U.S. financial restrictions.

The proposed rule by the Treasury, which has not yet been finalized, would prohibit Banque Misr’s Emirati branches from engaging with U.S. banks, further tightening the financial constraints imposed on Iran. The initiative aligns with ongoing efforts by the United States to isolate Iran economically and hinder its access to international markets.

The UAE central bank’s commitment to reviewing the Egyptian bank underscores the heightened regulatory vigilance in the region amid broader geopolitical tensions. While Banque Misr has not publicly responded to the U.S. Treasury’s allegations, the forthcoming examination is expected to scrutinize the bank’s compliance with both Emirati regulations and international sanctions regimes.

The development highlights the challenges faced by financial institutions operating in the Middle East amid increasingly complex sanctions environments, particularly those involving Iran. The coordination between U.S. authorities and regional regulators reflects a continued emphasis on enforcing sanctions designed to curb Iran’s financial operations abroad.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.