US Treasury Proposes Cutting Banque Misr's UAE Branches From Dollar System Over Iran Ties

The US Treasury Department proposed a rule on Friday, August 28, 2026, that would cut the United Arab Emirates branches of Banque Misr, Egypt's second largest bank, off from the US dollar financial system. Treasury Secretary Scott Bessent said in a statement the move is a first step in holding the bank accountable for what he called its continued support for Iran's government. The proposed rule, subject to a thirty day public comment period, applies only to the UAE branches' dollar transfers and does not extend to Banque Misr's operations inside Egypt or its other overseas branches, the Central Bank of Egypt confirmed the same day. Also on Friday, the Treasury Department added the Dubai branch manager of Iran's Bank Melli, Reza Mohammad Taeedi, and a Hong Kong based firm called Kameng Trading Limited to its sanctions list, accusing them of helping launder funds for Iran. The actions are part of a new campaign Bessent announced this week to press countries that still do business with Iran to sever those financial ties.