By Ukumbi Afrika 
Cairo—Egypt’s central bank said on Friday that U.S. sanctions linked to Iran against Banque Misr are limited to the Egyptian lender’s branches in the United Arab Emirates and do not extend to other Egyptian banks.
The U.S. Treasury said it had moved to restrict Banque Misr’s UAE branches from accessing U.S. dollar transactions over dealings linked to Iran. The measure forms part of Washington’s broader campaign to increase economic pressure on Tehran.
The Central Bank of Egypt said the action applies specifically to Banque Misr’s UAE operations and not to the bank’s other activities in Egypt or elsewhere. Egyptian authorities said they were in contact with U.S. officials regarding the measures
The U.S. Treasury has accused the UAE branches of Banque Misr of facilitating transactions connected to Iranian shadow-banking networks. Reuters reported that U.S. authorities are seeking to revoke the branches’ correspondent banking access to U.S. financial institutions.
The move comes as Washington intensifies its efforts to restrict Iran’s access to the international financial system, with U.S. officials warning financial institutions and other entities that facilitate Iranian transactions that they could face secondary sanctions.
For Egypt, the central bank’s clarification seeks to limit concerns that the U.S. action could extend to the country’s wider banking system.
Source: Reuters
Reporting: Muhammad Yamany
Editing: Andrew Heavens