Under a new rule proposed Friday by the Treasury Department, the Emirati branches of Banque Misr, Egypt’s second-largest bank, would be severed from access to the U.S. financial system.
It follows Treasury Secretary Scott Bessent's announcement this week of a new campaign to push countries that still do business with Iran to sever their financial ties or face retaliation from the United States.
In stopping short of imposing sanctions on the Egyptian bank, the move signals the Republican administration's reluctance to panalize major trading partners that do business with Iran, including China and India. Bessent told reporters on Monday that he wanted countries to have an opportunity to shift away from Iran before it was too late in a bid to avoid upending the global financial system.
The rule will be subject to a 30-day public comment period before it takes effect, the Treasury Department said.
The Trump administration “warned that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system,” Bessent said in a statement Friday. “Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.”
Egypt’s foreign ministry and central bank confirmed knowledge of the new rulemaking and are communicating with U.S. officials, according to a statement issued by the Central Bank of Egypt on Friday.
