FinCEN proposed a Section 311 measure against Banque Misr UAE's correspondent banking access.
Why it matters: If finalized, U.S. banks would be barred from maintaining correspondent accounts for the UAE branch, raising exposure for counterparties tied to its transactions. The move could force compliance reviews across banks handling UAE-linked trade flows and Iran-related payments.
- On Aug. 28, FinCEN proposed a Section 311 special measure against Banque Misr UAE.
- Treasury said the measure would block Banque Misr UAE's correspondent banking access to U.S. financial institutions if finalized.
- Treasury said Banque Misr UAE processed about $1.8 billion in transactions for 103 companies that may be part of Iranian shadow banking networks from January 2024 to June 2025.
- The move is part of Operation Economic Outcast, Treasury Secretary Scott Bessent's campaign to pressure Iran and its financial facilitators.
FinCEN on Aug. 28 proposed a Section 311 special measure that would sever Banque Misr UAE from U.S. correspondent banking access if finalized. The proposal applies to the bank's UAE branches, not to Banque Misr's operations in Egypt or other branches, according to FinCEN's notice. FinCEN announcement
In the notice, Treasury said the UAE branch processed about $1.8 billion in transactions for 103 companies that may be part of Iranian shadow banking networks from January 2024 to June 2025. The department said the proposed measure is intended to cut off U.S. correspondent banking access for the branch if the rule is finalized after the public comment process.
The action is part of Operation Economic Outcast, Treasury's label for its campaign against Iran-linked financial networks. Treasury Secretary Scott Bessent announced the effort on Aug. 24, and Treasury separately targeted the manager of Bank Melli's Dubai branch and a Hong Kong-based entity accused of helping launder funds for Iran. Bessent remarks Treasury press release
The proposal does not sanction Banque Misr's Egyptian parent bank. AP reported that the measure would cut off the Emirati branches from access to the U.S. financial system if finalized. AP report
By the numbers
- $1.8 billion - Treasury's estimate of transactions processed by Banque Misr UAE's branch for companies it says may be tied to Iranian shadow banking networks.
- 103 - Number of companies Treasury said were involved in those transactions.
- Jan. 2024 to June 2025 - Time period Treasury cited for the transactions.
Yes, but: The measure is only proposed, so no U.S. correspondent banking cutoff takes effect unless FinCEN finalizes the rule.
What's next: FinCEN will accept public comments before deciding whether to finalize the Section 311 measure.