UAE Launches Urgent Probe of Banque Misr After US Sanctions Proposal

The United Arab Emirates has ordered an urgent forensic investigation into the local branches of Egypt's state-owned Banque Misr, following a U.S. proposal to sever the bank's UAE operations from the American financial system over alleged links to Iranian shadow banking networks. The move marks a significant escalation in Washington's campaign to economically isolate Tehran. The action was initiated on August 28, when the U.S. Treasury Department's Financial Crimes Enforcement Network, or FinCEN, proposed a rule designating Banque Misr's five UAE branches as a "primary money laundering concern." The proposal, part of a broader initiative dubbed Operation Economic Outcast, would bar U.S. financial institutions from maintaining correspondent accounts for the branches, making dollar transactions significantly more difficult. Treasury officials stated that investigators identified 103 potential front companies that moved approximately $1.8 billion through Banque Misr UAE accounts between January 2024 and June 2026. The department accused the bank of allowing Iranian entities, including those linked to the Islamic Revolutionary Guard Corps, access to U.S.