CAIRO, Sept 23 – National Bank of Egypt (NBE) has agreed to acquire Banque Misr’s operations in the United Arab Emirates, reshaping the international presence of Egypt’s two state-owned banks weeks after the U.S. Treasury proposed restrictions on Banque Misr’s UAE operations over alleged links to Iranian financial activity.
The UAE central bank has granted preliminary approval for the transaction, according to a joint statement from NBE and Banque Misr.
The move follows a August 28 proposal by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) to revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions. FinCEN classified the UAE operation as a financial institution of primary money-laundering concern under Section 311 of the USA PATRIOT Act.
U.S. authorities said the proposed measure would prohibit U.S. financial institutions from maintaining correspondent accounts for Banque Misr UAE and impose additional safeguards on transactions involving the bank. The proposed measure applies specifically to Banque Misr UAE and not to Banque Misr’s operations in other countries.
Banks cite international restructuring
NBE and Banque Misr did not refer directly to the U.S. measures in their announcement. Instead, the lenders described the transaction as part of a broader restructuring of their international banking operations.
“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 United Arab Emirates,” the banks said.
They said the proposed transaction reflects a shared objective of integrating their external banking presence while ensuring that banking services continue without disruption.
NBE and Banque Misr are both owned by the Egyptian government. NBE maintains a representative office in Dubai.
U.S. scrutiny of Banque Misr UAE
FinCEN’s August action followed U.S. scrutiny of transactions involving Banque Misr UAE and Iranian-linked financial networks.
According to the U.S. agency, its proposed special measure was aimed at preventing the UAE operation from providing access to the U.S. financial system that could facilitate transactions connected to Iranian shadow banking activity.
FinCEN’s action remains a proposed rule rather than a final measure. Its public record lists Banque Misr UAE under proposed special measures dated August 28, 2026, with no final rule currently listed.
The development places the planned transfer within a wider effort by regulators to address compliance and correspondent-banking risks associated with Iranian-linked financial networks.
The UAE has historically served as an important financial and commercial channel for Iranian businesses, while U.S. authorities have increased scrutiny of companies and financial institutions suspected of facilitating sanctions evasion.
For NBE and Banque Misr, the proposed acquisition would consolidate their UAE banking footprint while the regulatory process surrounding Banque Misr UAE continues. The transaction remains subject to the applicable approvals and completion requirements.
