The Trump administration is moving to restrict the United Arab Emirates operations of an Egyptian bank, alleging it acts as a financial conduit for Iran's leadership. The Treasury Department on Friday proposed a rule that would sever the UAE branches of Banque Misr, Egypt's second-largest bank, from access to the U.S. financial system.
This action is part of a broader campaign announced by Treasury Secretary Scott Bessent to pressure countries still engaging in business with Iran to cut financial ties or face U.S. repercussions. The administration stated that Iran's economic enablers should not retain access to the U.S. dollar and the global financial system.
Bessent described the move as a first step in holding the bank accountable for its support of the Iranian regime, adding that the bank "decided to find out the hard way." The Treasury Department indicated that the proposed rule will undergo a 30-day public comment period before taking effect.
In parallel actions, the Treasury Department also sanctioned the bank manager of the Dubai branch of Iran's Bank Melli and a Hong Kong-based firm accused of facilitating fund laundering for Iran. These measures underscore the U.S. strategy to economically isolate Tehran.
Treasury Secretary Bessent is scheduled to attend upcoming Group of 20 finance ministers meetings, where he plans to engage with counterparts from major and developing economies to garner support for Iran's economic isolation. The administration has stated its intention to avoid disrupting the global financial system, signaling a preference for countries to voluntarily shift away from dealings with Iran before more stringent measures are imposed.