UAE approves sale of Egypt’s Banque Misr branches

The Central Bank of the UAE has given preliminary approval for the National Bank of Egypt to acquire Banque Misr’s branches in the Emirates.

The move follows the US Treasury Department’s August 28 proposal to shut down Banque Misr UAE’s three US correspondent accounts.

“As part of its efforts to keep pace with the current development of foreign banking markets and the entailed requirements during the next phase, Banque Misr and the National Bank of Egypt announced a preliminary agreement on rearranging their banking presence in the UAE,” the two banks said in a joint statement.

The US Treasury called the Egyptian institution’s five Emirati branches a “critical node” for Tehran’s access to US dollars.

Banks host correspondent accounts for one another to process transactions in their respective jurisdictions.

The blacklisting by the Financial Crimes Enforcement Network – the US anti-money laundering office – is the first salvo in Operation Economic Outcast, which US treasury secretary Scott Bessent unveiled late last month as a campaign of “economic asphyxiation” against the Islamic Republic.

The UAE has already suspended all trade activities, commercial exchanges and financial transactions with Iran until further notice.

Further reading:

• US sanctions Iranian airlines in financial crackdown
• Gulf banks’ US ties complicated by crackdown on Iran
• US alleges Iranian laundering via Banque Misr

This month the Treasury blacklisted 27 Iranian airlines, few of which still fly to and from Gulf states, and told American banks to increase detection and reporting of transactions linked to Iran’s aviation procurement channels.

In his UN General Assembly (UNGA) speech on Tuesday, US President Donald Trump warned that he could “annihilate the Islamic Republic” if no peace deal is reached.

He told Fox News on Sunday that the only options on the table were “wiping Iran out”, letting it rot economically or making a deal.

Iranian President Masoud Pezeshkian is expected to address the UNGA on Wednesday.